My two cents on the FTX shitshow

Andrea ℵ Labate
2 min readNov 12, 2022

So… my two cents on the #FTX shitshow.

Every centralized crypto exchange is not safe.
Three main reasons:
- They heavily rely on a proprietary token (BNB, FTT, CRO, etc.)
- They rely too much on proprietary stable coins
- They’re centralized.

This whole crypto revolution was about decentralization. Detach the economy from a company, base it on people.
Companies fail.
No company in the history of companies didn’t fail or was on the verge of failure. It happens, that’s how capitalism go.
As a single person, when you’re in debt you feel bad — that’s what society teaches us. As a company, debt is wealth — for capital markets, debt means someone is believing in you.
And at some point, failure will be the most profitable option for the founders and/or stakeholders.
This is the economic system we’ve built. We, humans, live our short life based on this macro structure, either knowing it or not knowing it.

So are CEXs all bad?
No they’re not. But they can be, at any point in time, for no particular reason, without any red light.
In one day, any CEX can go to shit.

On instagram I wrote… “When it all goes to shit… flush the toilet”.
And that’s what we need to do. Flush the fuckin’ toilet.
Nothing in the whole world has value unless people are willing to pay for it. Water, air, oil… They have value as long as we need them.

Do we need centralized exchanges?
They’re the engine that is bringing people to blockchain.
They’re the marketing department for decentralization.
Bitcoin doesn’t have a CMO.

But we don’t need to overvalue CEXs and CEXs token. We need to give them proper value and store our reserves of crypto wealth on decentralized wallets. We need to OWN what we believe on. Not derivatives, not ETFs, not synthetic shit.
If you believe in this rising economy: OWN THE ASSET.

CEXs are to be used for what they were built for. They deserve to protect the capital you put at risk. Not your whole wealth.
If a company is protecting all of your wealth, that’s so far being called a BANK.

Understand this and you will not lose money in the long run.
CEXs are good. Companies are good. People are good.
Until they fail.

And fly to Bolivia with customer money (and my own) like one of the youngest self-made billionaires ever existed just did, Sam Bankman-Fried. Screenshot attached.

So… that’s my two cents.
Which is pretty much what’s left of my FTT investment anyway.