After the failure of FTX, the co-founder of Ethereum, Vitalik Buterin, has shared his thoughts on one of the cryptocurrency industry’s biggest “black swan” events, as well as some positives that have come from it. Buterin has made his voice heard following the collapse of the FTX exchange.

During an interview on Nov. 20, Buterin gave an interview to Bloomberg in which he emphasized his idea that the FTX crash can serve as a learning moment for the rest of the cryptocurrency industry.
He admitted that the basic strength of distributed ledgers and the technology that drives the bitcoin asset market have not been called into question. He was referring to the fact that the market has not been subject to any regulatory scrutiny.
Buterin also called the collapse of the FTX exchange a “great tragedy”, but said that he supports the position that many people within the Ethereum community have in reference to centralization. This was his explanation of why the failure of the exchange was significant.
He went on to clarify that one of the bases of this philosophy is to put more trust in open and transparent code than in humans. He said that this is one of the ways that this philosophy can be used.
Buterin posted a guide on how to run a “secure CEX” over the weekend. The guide shows that the company is in the process of filing for bankruptcy.
Most people agree that the main reason FTX is in the situation it is in now is that it used money deposited by clients for things other than what the exchange had planned.
After receiving a large number of withdrawal requests at once earlier this month, the exchange quickly realized that it could not meet the demand for withdrawals with the liquidity it had available. This discovery was made after the exchange received a large number of withdrawal requests at once.
The only other major player in the business to have spoken out against FTX’s impact of late is Vitalik Buterin, though he’s not alone in doing so.
On Nov. 17, Binance CEO Changpeng Zhao stated that while regulation is necessary, it is more important for industry players to lead by example than for regulators to regulate the industry. He made this statement in response to a question about whether the regulation is necessary or not.