Waldo JaquithIn defense of FTX, there was just no way to know that cryptocurrency was a house built on sand. I've certainly never heard anybody mention any concerns about it. Just a shocking discovery. I wish we'd all seen sooner that it's a Ponzi scheme, but there was no way to know.
The story of the collapse of FTX highlights the extent to which cryptocurrencies are being legitimacy-laundered by VCs and the financial sector, in a way that's striking similar to the mortgage-backed securities that caused the 2008 financial collapse.
In both cases, an absolutely worthless asset was repackaged as being highly valuable, by a finance system that figured they wouldn't be left standing when the music stopped playing. But there's one big difference this time.
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