Amid the collapse of Sam Bankman-Fried’s exchange, Ethereum co-founder Vitalik Buterin criticized the ex-FTX CEO and his business practices.
The Collapse Due To Centralised Nature
As a result of the centralized nature of FTX, its colossal collapse was inevitable, the Ethereum co-founder said at the LaBitConf conference in Buenos Aires, Argentina.
Asked about the collapse of FTX and other firms in this year, he replied “This year we’ve seen a huge number of things that break because they have a model which is fundamentally bad.”
“There is trust in a guy that goes around, wears a suit and gives himself a name like ‘Bankman’,” Buterin said in reference to the ad campaigns of the crypto celebrity, SBF appearing in San Francisco.
People Attracted to FTX’s Marketing
According to Buterin, people were more interested in FTX’s marketing and its “personalistic style,” reminiscent of 1930’s dictatorships, an exact reversal of every ethos associated with crypto.
“exact opposite of every ethos of crypto is a project that tries to be decentralized,” he said.
Meanwhile, in terms of market capitalization, Ethereum ranks second and runs on the Ethereum blockchain.
A founding member of the project, Buterin has been criticized for fostering cults of personality around him—similar to Sam Bankman-Fried—and thereby centralizing the project.
one user on Twitter commented on Buterin’s tweet that it reminded them of Sam on November 10, when he wrote about anti-malaria, pandemic response, and other issues.
“Anti-malaria, pandemic response, mitigating extreme poverty, life extension research, mitigating existential risks (including AI) and thinking about the multimillion-year future of humanity are all very important and undervalued issues and will continue to be for quite a while,” tweeted Buterin.
The Twitter user who goes by the pseudonym @bearslayer5 commented on the post, saying “Vitaliks last 3 tweets, dude gives me Sam vibes. Pandemic response etc. & donating, same cover up WEF type bullshit like #SBF , then he talk about dog coins sent to his wallet, that some people argue that he himself creates. Says “be willing to make crazy bets” … like Sam…”