Hacker News Reader

The somewhat important difference here is that participation in crypto is voluntary (outside of e.g. extortion). The industry critically relies on reputation, media hype, regulations, etc. FTX collapse and this trial had and will continue having a catastrophic effect on all of the above.

Hard to predict whether crypto/web3 will recover. Saying that, I thought ICO scam would be the end of it, and then soon after NFTs happened...

View on HN

If it has any worth (and I mean the banking angle of blockchains), it will recover with regulation/technology X, which is the good burden of making all of FTX's misdeeds impossible. If this arguably massive effort is not taken by key players, then all those resources are better spent elsewhere.

The only future for that I can think of is state or large institution owned stablecoins. But that is so far removed from absolutely everything crypto and web3 promised, I wouldn't even put that in the same category. No public ledger, not decentralized, not an alternative to banking, etc. I still don't understand the difference between having $10 in PayPal vs having 10$ in PYUSD.

It’s much easier for the owner of PYUSD to inflate their assets and be insolvent without customers knowing about it. That’s it.

Reply on news.ycombinator.com