Dirk Siebels
@disic
So, Molly White's take on the SBF sentencing provides some very sad truths about the crypto industry. It's a good and useful read but it's not a complete picture either. Some thoughts. https://www.theguardian.com/global/commentisfree/2024/mar/28/sam-bankman-fried-prison-crypto-regulation
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Dirk Siebels
@disic
She says that 'there have been no changes that would prevent a new crypto mania just as devastating as the last.' Really though?
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Dirk Siebels
@disic
There's actually been a lot of regulatory work around the world. Look at efforts in Singapore, Hong Kong or Brazil, not to forget the MiCA regulation in the EU. Lots of people here on Farcaster know quite a bit about some or all of these efforts.
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Dirk Siebels
@disic
Regulation takes time though. By comparison, how much regulation is there for virtual social media monopolies or tech giants? Those companies have become very big very quickly with regulators around the world constantly playing catch-up.
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Dirk Siebels
@disic
There may be bubbles – but is an AI-fuelled stock rallye much less likely to leave a lot of people worse off financially? FTX (and other firms) collapsing in 2022 'were devastating to those who had been convinced that putting their money into cryptocurrency was a worthwhile investment.' Is that the full story?
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Dirk Siebels
@disic
Most people who bought tech stocks in February 2000 didn't know much about the internet. Shortly after, their stocks were worth a lot less. That didn't stop the internet from growing. When you're hunting big profits, you should know that there is a significant risk involved. That's true with or without regulation.
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Dirk Siebels
@disic
Molly White says that it's because many people 'believed that the firms who held their crypto tokens were regulated much like traditional banks.' I completely agree, but I don't think that's the end of the story.
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