Sign Up on MEXC
The crypto market is still struggling to recover from the recent FTX collapse. However, David Schwartz, Ripple CTO has drawn some key learnings from the FTX fiasco. Earlier, Ripple CTO called Sam Bankman-Fried (SBF) a terrible trader.
Ripple CTO takes lesson for FTX crash
Ripple CTO in a Twitter thread mentioned that there is one important lesson that he believes will not be learned from this collapse. He added that if someone is holding billions of funds from other people for a long period of time then temptations to speculate with those holdings get irresistible.
However, if there are not many verifiable checks in the process then nothing else will be sufficient, he suggests. Ripple CTO pointed out that regulations and watchdog that punishes after the deed is done and won’t catch it earlier. Meanwhile, investors will also don’t do the analysis either.
The most important lesson that can be learned from the FTX crash is that temptation is irresistible. David Schwartz, mentions that most people will choose not to learn from this fact.
Investors did this for more profit?
He further added that expert investor groups who have access to confidential details of the firms couldn’t figure this out. While they invested hundreds of millions of dollars in the FTX. This looks like they were trying to punish FTX customers.
This depicts that they were too attracted by the profit motive. In this pursuit, they gave money to the scam and allowed it to grow and pull more people in. However, customers had no idea what was happening behind them.
Coingape reported that an FTX hacker is on a move swapping Ethereum for Bitcoin amid the crashing crypto market. As per the data, the hacker moved ETH in multiple batches of 15K. This has led to the ETH price drop.
- Bitcoin’s Bull Cycle May Peak This Month, Peter Brandt Says
- Ethereum Whales Buy $204M ETH Amid Rebound Above $4,400
- SOL Rises as Nasdaq-listed Forward Completes $1.65B Raise For Solana Treasury
- Breaking: U.S. CPI Inflation Rises To 2.9% YoY, Bitcoin Reacts
- Over $4 Billion in Bitcoin and Ethereum Options Expiring After US CPI
- Pi Network Price Wyckoff Theory Signals a Surge as One Whale Keeps Buying
- ETH Price Prediction As Bitmine and SharpLink Continue ETH Buying Spree- Analyst Predicts $7K Next
- AVAX Price Prediction as Avalanche $1B Treasury Gains Momentum – Is $55 in Sight?
- Pump Price Forecast as $12M Buyback Fuels Scarcity — Is $0.01 in Sight?
- SUI Price Prediction as Mysten Labs Meets SEC Ahead of ETF Decision—Is $7.5 Next?
