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The world of cryptocurrency has faced events in the past two years that require us to rethink dangerous trends in the industry. Emin Gün Sirer’s recent statements carry critical warnings. In particular, the SBF scandal brings to the fore many issues that need to be questioned before assuming the innocence of crypto projects and their leaders.
Emin Gün Sirer Highlights a Dangerous Situation
SBF was seen as one of the popular figures in the crypto world. However, as Emin Gün Sirer emphasizes, appearances can be deceptive. SBF’s true intentions and activities point to many dangers that worry the crypto community.
Firstly, Emin Gün Sirer points out the mismatch between project narratives and their technologies. Centralized sequencers and the absence of fraud proofs in Layer-2s contradict crypto ideals. Are these types of projects really operational, or are they just selling hot air?
Additionally, the practice of projects currently selling tokens to raise money for a technology switch in the future is concerning. Such practices could be contrary to legal regulations and expose investors to serious risks.
The issue of founders dumping their personal tokens before launch is also critical. Keeping team members locked and managed transparently is important according to Sirer. Otherwise, investor confidence can be shaken, and crypto projects can lose their reputation.
Token value depreciation and manipulation are also worrying. Some actors can serve their own interests by playing games with low-value tokens and borrowing against them. Such manipulations can threaten market integrity. Lastly, founders complaining about personal pleasures can be an ethical discussion point. This situation can also indicate a lack of seriousness in project management.
Ways to Prevent Such Corruption
According to Emin Gün Sirer, there is a simple test to cut through this noise and identify what truly matters. Recently, scalability and performance issues were among the prominent problems in the crypto world. Sirer notes that platforms like Avalanche and Solana have emerged to address these issues. However, Sirer emphasizes that instead of focusing only on specific use cases, these solutions should be usable in a broader scope.
Sirer questions whether crypto projects truly bring a game-changing approach to addressing prominent issues when evaluating them. For a project to be truly significant, its owners need to be in a unique position to solve these problems and be able to clearly demonstrate this.
However, with Sirer’s warning, many projects in the crypto world can easily emerge that could be deemed as trash. Sirer points out that a new group of people is lining up to fill the void left by prominent figure Sam Bankman-Fried (SBF), which could affect developments in the sector.
