Connect with us

Featured

Ripple CTO Says One Important Lesson From FTX Meltdown ‘Will Not Be Learned’

Ripple CTO Says One Important Lesson From FTX Meltdown ‘Will Not Be Learned’A Ripple executive says there is one important lesson from the meltdown of crypto exchange FTX that he “can say with total confidence will not be learned.” The executive added: “Regulation that punishes after the fact won’t catch it. Investor due diligence won’t either.” One Lesson From FTX Collapse That Won’t Be Learned The CTO […]

Ripple CTO Says One Important Lesson From FTX Meltdown ‘Will Not Be Learned’

A Ripple executive says there is one important lesson from the meltdown of crypto exchange FTX that he “can say with total confidence will not be learned.” The executive added: “Regulation that punishes after the fact won’t catch it. Investor due diligence won’t either.”

One Lesson From FTX Collapse That Won’t Be Learned

The CTO of Ripple Labs, David Schwartz, shared his thoughts on the collapse of cryptocurrency exchange FTX in a series of tweets Monday. FTX filed for Chapter 11 bankruptcy on Nov. 11.

While noting that several lessons should be learned from the FTX fiasco, the Ripple executive said:

There’s one important lesson that is really pretty obvious in retrospect and that I can say with total confidence will not be learned.

He explained: “If you hold billions of dollars of other people’s money for indefinite time periods, the temptation to speculate with those funds is irresistible if there aren’t verifiable checks that make such risk-taking virtually impossible, nothing else will be sufficient.”

Schwartz emphasized:

Regulation that punishes after the fact won’t catch it. Investor due diligence won’t either. Of course, many people will say that it could be, and likely is, happening, but they’ll be shouted down by accusations of sowing FUD or upsetting a system that is making people money.

“This kind of thing will always happen unless it cannot happen,” he stressed. “The temptation is irresistible. That is one of the most important lessons of FTX. But most people will actively choose not to learn this lesson because of, among other things, the elephant in the room.”

FTX is currently being investigated by a number of authorities worldwide. In the U.S., the Department of Justice (DOJ), the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC) are investigating the exchange for allegedly mishandling customer funds, among other charges. Turkey‘s financial intelligence unit has also launched an investigation into FTX and the Bahamas securities regulator has been trying to seize FTX’s cryptocurrencies.

Ripple Labs is currently engaged in a lengthy lawsuit with the SEC. The securities regulator sued the company, its CEO Brad Garlinghouse, and co-founder Chris Larsen over the sale of XRP, claiming that the crypto token is a security. Garlinghouse expects an answer in the first half of 2023. The Ripple CEO recently said that the crypto industry will be stronger after the FTX fiasco if we keep focusing on transparency and trust.

What do you think about the comments by the Ripple CTO? Let us know in the comments section below.

Source: Featured Archives – Bitcoin News

Featured

Elon Musk Says Apple Has Threatened to Withhold Twitter From App Store as Battle for Free Speech Escalates

Tech giant Apple has threatened to withhold Twitter from its app store, according to Tesla CEO and Twitter chief Elon Musk. The billionaire added: “This is a battle for the future of civilization. If free speech is lost even in America, tyranny is all that lies ahead.” Apple’s Threat to Musk and Twitter The battle […]

Tech giant Apple has threatened to withhold Twitter from its app store, according to Tesla CEO and Twitter chief Elon Musk. The billionaire added: “This is a battle for the future of civilization. If free speech is lost even in America, tyranny is all that lies ahead.”

Apple’s Threat to Musk and Twitter

The battle for free speech has escalated for Elon Musk and his newly acquired social media company as Apple has threatened to withhold Twitter from its app store, Tesla CEO and Twitter chief Elon Musk revealed Monday, noting that Apple will not say why.

In a follow-up tweet, Musk confirmed that Apple is “making moderation demands.”

According to reports, Apple was one of Twitter’s top advertisers, spending more than $100 million per year advertising on the social media platform. However, Musk tweeted Monday:

Apple has mostly stopped advertising on Twitter. Do they hate free speech in America?

Replying to Musk asking who else has been withheld by Apple, blockchain firm LBRY shared: “During Covid, Apple demanded our apps filter some search terms from being returned. If we did not filter the terms, our apps would not be allowed in the store. Apple may make good products, but they have been opposed to free speech for some time.” The company added, “Apple disallowed almost anything related to Covid, especially vaccines or human origins of the virus,” elaborating:

We had to build a list of over 20 terms to not show results for, only on Apple devices. Apple also later rejected us because users included Pepe images in videos.

In addition, Musk tweeted: “Did you know Apple puts a secret 30% tax on everything you buy through their App Store?” According to Apple’s website, the company takes a 30% “processing” fee from all sales made through its in-app purchase system.

As the free speech discussion intensified, a Twitter user warned Musk: “Is this really a fight we want to pick? An awful lot of your Tesla customers use iOS to access their cars … if that app gets pulled, it’ll significantly impact your ability to sell to Apple customers.” Musk replied: “Are you suggesting Apple would use its duopolist powers to hurt Tesla?”

Battle for Free Speech Intensifies

As the free speech discussion deepened, Musk tweeted that if free speech is lost in the U.S. then tyranny is all that lies ahead, stressing that this is a battle for the future of civilization.

The Tesla executive asked in another tweet: “Why are so many in the media against free speech? This is messed up.”

Many people joined in the free speech thread. “Monopolies should be subject to the same limits we placed on our government in the Bill of Rights,” the pro-bitcoin CEO of Microstrategy, Michael Saylor, opined. “Make no law abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.” Musk agreed, tweeting: “Absolutely, especially if done in collusion with the government.”

Musk said Friday that he will make an alternative phone if Apple and Google boot Twitter from their app stores.

What do you think about Apple threatening to withhold Twitter from its app store and Elon Musk’s fight for free speech? Let us know in the comments section below.

Source: Featured Archives – Bitcoin News

Continue Reading
Advertisement

Top Posts

We need your support.

Enjoying our free service? Please help us by clicking the ads on our website. They are 100% safe. Thank you!