Cryptocurrency has faced more than its fair share of catastrophes, nearly all of which seemed as though they might end or at least seriously impede the continued growth of the sector. Yet despite the many “teachable moments,” the social layer of crypto refuses to learn its lesson and continues to place its trust in the hands of individuals rather than fully utilize the technologies it claims to support.
Since the early days of the industry, crypto has faced major blows at the hands of centralized actors — Mt. Gox, which handled 70% of global transactions, lost track of 25,000 Bitcoin (BTC) in 2011. The most recent debacle with FTX is only the latest iteration of a longstanding pattern within crypto. Just last year, we saw implode and be written off as a Ponzi scheme. In the past, we’ve seen major exchanges unable to account for vast sums of user deposits, as was the case in 2018 with Canada-based exchange QuadrigaCX.
Sam Forman is the founder of Sturdy, a DeFi lending protocol. He became passionate about cryptography in high school before studying math and computer science at Stanford. When he’s not working on Sturdy, Sam practices Brazilian jiu-jitsu and roots for the New York Giants.