FTX Collapse was not Unprecedented, Said Dogecoin Creator

Recent collapse of Bahamian crypto exchange FTX has caused many activities to take place as its ripple effect. More or less the abrupt collapse of Bahamian crypto exchange came as a surprise but many do not believe the same. Billy Markus, creator of biggest memecurrency Dogecoin (DOGE), holds strong disagreement with it. 

On Sunday, 13th November 2022, Dogecoin creator went on to Twitter and posted through his handle Satoshi Nakamoto noting his take on FTX collapse. In addition, he also reiterated the reason for creating Dogecoin in the first place. 

Dogecoin Creator’s Take on FTX Collapse

Markus noted every crypto hype cycle’s journey and its end being crashed all are the same as recently happened with FTX. He recalled the instances of 2013 and 2018 calling them the same. The regulators do not go after the big players and only to catch the small projects citing them as fraud or scams. While the “rampant fraud, delusion, weird pointless tribalism, shady exchanges” gets fall. 

In addition he stated that such incidents would happen again and still everyone would be acting like crazy and pretending as if it was unprecedented. He condemned this as it isn’t something new. Rather, it has been the scene in crypto space since its emergence and if someone is saying otherwise then he might not be aware of the scene.

This is what made the Dogecoin creation necessary, to make fun of the stupidity going around in the space, he added. 

What People Could Do for This?

Further, Markus said those who can face the stupidity going around the crypto space and understand everything about it, can get it. He suggested not becoming a part of a group that does not even know what is happening and only stuck with the narrative going on all around. 

While clarifying his stance, the Dogecoin creator further noted that he is not against crypto. He said the crypto is fine as it is “a shared database and a protocol”. People can move their coins from respective wallets to whatever they want regardless of any centralized validation. Crypto is fine yet people are the problem, he added. 

Markus Could be Right about FTX Collapse

When FTX collapse is observed from a wider spectrum, it becomes clear that the internal management could be said to be responsible for the mishap. Reports confirm that the crypto exchange used the funds belonging to the users and allocated it for funding, merger and acquisitions, lending, etc. 

The relentless spending of consumer’s funds turned into a liquidity crisis for the company as they started withdrawing. FTX has halted the withdrawals and what followed next has become the pattern followed by many other companies that collapsed earlier. On 11th November 2022, FTX filed for Chapter 11 Bankruptcy and CEO Sam Bankman-Fried stepped down from his post. 

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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