A lot of bad incidences happened in crypto community this year including:
1) FTX
2) Luna
3) Gemini Earn
4) Celcius
5) Voyager
6)BlockFi
All these incidences happened because of the greed of some people. It is important to control the entry of these kind of people as developers or people behind some new crypto projects. Otherwise people will have very less trust left on crypto in general and people will move to other alternatives. What do you think are the required steps to prevent these incidences from occurring in future ? Or are these unavoidable ?
I am pleased that these fake companies are falling down because it will assist to increase openness in the crypto industry, weeding out the bad actors, which is what cryptocurrency is all about. Just look at the CEOs of the companies that failed this year, they were all running or had previously worked in one or more TRADFIs, they thought the dirty games they were all playing could be done in the crypto space, but I'm glad they were exposed, there is no tolerance for corruption in this space.
Centralization has always been a problem for cryptocurrencies, but if Merkle trees or proofs of reserves can demonstrate some transparency from these companies, I welcome the idea and don't care about their privacy because they gave it up when they made the decision to become centralized, which means they work for the public rather than for private interests. All of them should provide proofs of reserves, though I wouldn't use them if I did, but for the confidence of those who do.