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Another day, another crypto prodigy burns like Icarus, dragging its project subsequently with billions of investors’ money locked along with the rest of the industry into the abyss. SBF, or Sam-Banked Fried, was many things, but he did not fly too close to the sun, no sir.
What he did, though, was unethical, wrong and simply illegal and reckless. But while the market is plummeting through the floor, people are losing their lifetime savings, like Tom Brady, who invested more than $600 million in the FTT token, the exchange’s native currency; the question remains: where do we go from here?
Do we revert to heal our wounds and hope to see better days? Do we actively ask for stricter regulations, which would prevent us from these nexus events? Or do we simply fall back and see the world burn? Join me in today’s editorial to consider the ramifications of what happened to SBF and FTX could mean for Ethereum, Big Eyes Coin and the crypto industry in general. Let’s dive in.
Context:
Without delving too much into details, the following happened: FTX had a sister research company Alameda, which pursued highly aggressive investment strategies even during the bear market. As you could have guessed, the money they put into the protocols was not only investors’ money but also the FTT token. Naturally, many would ponder why they pursued such a strategy in the first place. To answer this question, you must understand that FTX’s growth was phenomenal.
In three years, the company’s valuation boosted to almost $40 billion, unprecedented for the crypto industry. Considering this, it should not be surprising that SBF thought his bet would pay off since this is a somewhat regular thing that any centralized bank does, for example, with its clients’ money. Unfortunately, it did not, and the crypto industry faced the inevitable wrath of Damocles’s sword.
Ethereum: Is There A Future?
The situation with Ethereum has been somewhat complicated ever since the Tornado Cash software was banned. Although it does not mean much on the surface, in reality, L2 protocols, like Aztec and its friendly neighbors, could face extinction, which is not good news for the Ethereum network. The aforementioned L2 protocols are here to ensure that financial data from transactions on Ethereum is hidden from the public eye. From the very beginning, Ethereum bet on decentralization facilitated through privacy but at the cost of high gas fees and the network’s speed.
And while these things are hoped to be resolved in the future, the sacrifice was made to ensure privacy first above anything else. Before the FTXs collapsed, more than 70% of DeFi validators were OFAC compliant, with most of the industry openly embracing inevitable regulations. The problem is that what happened could spark even more paranoia within the sector, leading to rules hindering innovation. What the future holds is still unclear, but these problems should be addressed
if we want crypto to prevail.
Big Eyes Coin: Will Meme Tokens Be Affected?
The short answer is yes and no. While FTX’s debacle looks terrible for the fundamental protocols, like Ethereum, meme tokens swim in entirely different waters. The Big Eyes Coin project does not deal with privacy like L2 protocols; first and foremost, it is a community token, where its loyal fanbase is its strongest trait. It indeed has a DeFi component to it, but then again, protocols like Circle went to comply with the regulatory framework, and they are working just fine without any problems.
If you are intrigued about Big Eyes Coin, here is a video below delving into more depth.
https://www.youtube.com/watch?v=DxAjrXI_1uw
So the Big Eyes Coin project, which involves DeFi and NFT elements in its value proposition, is not about how regulations will affect it but whether it would embrace these regulations or not. A meme token that plans to have its own NFT marketplace, where holders of JPEGs would be incentivized to resell them on secondary markets through a specific tax implemented, should not fear the wrath of Damocles’s sword because regulations would not affect it as much as other sectors of the crypto industry. If you think this project resonates with you, here is a promo code BIGPRIZE11 to win some free tokens when purchasing the platform’s native token, BIG.
- Presale: https://buy.bigeyes.space/
- Website: https://bigeyes.space/
- Telegram: https://t.me/BIGEYESOFFICIAL
Disclaimer: This is a paid release. The statements, views and opinions expressed in this column are solely those of the content provider and do not necessarily represent those of NewsBTC. NewsBTC does not guarantee the accuracy or timeliness of information available in such content. Do your research and invest at your own risk.
