Vitalik Buterin Comments On The Market: These 2 Altcoins Are Not Failed!

Ethereum founder Vitalik Buterin talked about the impact of FTX’s bankruptcy on the altcoin market. He said founder Sam Bankman-Fried’s recent political games were one of the main reasons.

Vitalik Buterin says political attacks triggered the crisis

Buterin cited FTX CEO Sam Bankman-Fried’s donations to political presidents. He said that the crisis that directly affected the market was caused by this. The Ethereum founder says FTX’s headquarters are in the Bahamas due to pressure from US regulators. He also stated that the position was chosen partly due to the lack of a regulatory framework as in the USA.

Collapse does not mean failure for these altcoins

Buterin, FTX, “was an exchange run by a person who was very politically committed and apparently put a lot of effort into getting a letter of inaction from the SEC. He has made large donations to politicians of all kinds. That was the reason for his bankruptcy.” He also adds that despite the bankruptcy, there are a few big-ticket projects like Ethereum. According to Buterin, the priceless loss of Solana (SOL) does not mean the failure of the project.

According to the Ethereum founder, DeFi and individual storage options work better

Buterin said that people are forced to prefer centralized ones over decentralized platforms. This is because centralized exchanges provide convenience in storing cryptocurrencies. In his own words:

Creating a wallet by yourself is still a problem. You have to find a way to have faith wallets, you have to carry your hardware wallet with you and write down all the promises and many complexities. However, centralized options provide obvious convenience in this regard.

The bankruptcy of FTX, the third largest cryptocurrency exchange in the world, sent shock waves to the cryptocurrency market, scaring millions of investors and further confusing the cryptocurrency markets. However, what initially seemed like another example of a multi-leveraged crypto firm going bankrupt due to the price volatility of its native token has now opened up a can of worms that could undermine the stability of the entire crypto ecosystem.

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