The Nature Of Cryptocurrency Is Not Centralized

The collapse of FTX adds to the list of centralized crypto project failures.Previous failed projects, such as Terraform Labs, Three Arrows Capital, Celsius Network, and Alameda Research, are examples of centralized crypto project failure.

The nature of cryptocurrency is decentralization. When an authority tries to control and take advantage of centralizing cryptocurrency in the field of lending, saving, or investment platforms, the customers or clients have to send their possessions to other people. This is the same as the practice of banking but using cryptocurrency instruments.

This condition is worse than the investment offered by banks because there are strict regulations in the banking industry. Regulations on centralized cryptocurrencies still have gaps for fraudulent acts committed by the developers themselves, so investment and business models such as Celsius, FTX, and others are more risky than investing in bank products.

Developers have to think of a pure decentralized model, but the problem is that the developers want profit, so in the end their project remains centralized.

You can see a lot of new rich people as a result of building centralized crypto projects, so crypto projects attract opportunist developers who only want to extract other people's wealth.They offer tokens for tens of dollars in minting fees. They make projects that seem great with cool website designs, then conduct seminars to attract people to invest in buying the tokens they make.
Even fools flock to buy these tokens with sweet promises. After the money is collected, the developers then buy back the tokens so that the price goes up, which makes people more interested in saving and buying the tokens. At the highest price, the developer then sells their reserves in bulk. Now, in this condition, the developer is profitable twice. After that, the bad developer will disappear and create a new project.

In conclusion, what can be expected from a centralized project when many cases fail to withdraw funds from their platform? It is time for crypto users to abandon such projects and return to pure decentralized platforms.