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IPFS News Link • General Opinion

Thoughts On A Crypto Crisis

• by Omid Malekan

Based loosely on an Upton Sinclair novel that satirizes the early days of the oil industry, it portrays the life of an independent oil man who rises to great wealth and power at the expense of his humanity. While that character's arc is predictable, what makes the movie is his back and forth interaction with a young pastor whose own lust for power turns out to be just as great, and just as corrupting. Lewis' character, while evil, is at least self-aware about his greed and selfishness. The pastor is not, and in some ways turns out the more pathetic character.

Welcome to the state of crypto in its thirteenth year, except that in our story the greedy entrepreneur and the morally bankrupt spiritual leader have turned out to be the same person. FTX founder Sam Bankman-Fried, but also Do Kwon (of Terra), Su Zhu (of Three Arrows Capital), Alex Mashinsky (of Celsius) and a few others. All claimed to be working towards the greater good. All ended up obscenely wealthy in the process. All turned out to be frauds.

Tempting as it might be to focus all of our energy into anger towards these men, this is a time for self reflection. As an industry, but also a community. Crypto has attracted millions of people from all over the world and the vast majority are good people who believe in this new way of building trust. But we are terrible at picking leaders (with a few exceptions) and have only ourselves to blame when they let us down.

The great irony of the collapses we've experienced lately is that nobody has to use these firms.