The collapse of FTX caused a notable drop in the price of bitcoin (BTC), but that by no means means that BTC can be wiped out by bankrupt crypto firms, according to bitcoin proponent Samson Moe.
The crypto industry is still experiencing a wave of FTX infections, and it is likely to face more such disruptions in the near future, Moe said in an interview with .
According to the executive, the FTX infection could be part of the collapse of the Terra ecosystem, which has caused a domino effect in the industry, including major crypto lenders such as Celsius and Voyager.
“There will be more of these things happening in the crypto space because all these projects are useless house of cards,” Moe predicted. He added that FTX’s failure was “easy to foresee” due to FTX’s relationship with Alameda.
“The general rule of thumb is that if a company prints a token out of thin air and either retails it or relies on it as an asset, you should expect them to eventually collapse,” the JAN3 CEO stated.
Moe also argued that the industry’s proof-of-concept efforts — including exchanges that are increasingly issuing proof of reserves — mean little if they don’t prove commitment. “Any system that can be beaten will be beaten,” he said, referring to players who fake their reserves by shuffling funds among themselves just before providing proof.
“Then you have to consider the fiat side – that would require an audit, but that might not be useful as FTX also had an auditor,” he noted.
As FTX infections continue to spread across the industry, the worst scenarios can be expected for some of the world’s largest crypto firms. When asked if Bitcoin would survive a hypothetical event where crypto giants like Tether or Binance collapse, Moe expressed his belief that Bitcoin is meant to solve any problem, stating:
“Bitcoin will solve any problem simply by its design and the irrefutable need of human civilization for reliable money. The collapse of any giant will only be a temporary setback, just as the influence of Mt.Gox no longer matters.”
While the crypto industry is likely set back a few years, the FTX crash has done “miracles” for the bitcoin industry in terms of the growing adoption of self-storage hardware wallets, Moe stressed. “Unfortunately, most people cannot learn from the mistakes of others, only from their own suffering,” he added.
Related: FTX to be the last giant to fall this cycle: hedge fund co-founder
The chief executive also suggested that bitcoin newbies are likely to make the same mistakes in the future, despite the industry showing the biggest centralized exchange vulnerabilities during bitcoin’s very first crash in 2011. He declared:
“Then in the next few years everything settles down, and newcomers in five or six years will again make the same mistakes and lose their funds. Rinse and repeat.”
Former director of strategy at Blockstream, Moe is a major Bitcoin proponent and founder of game development company Pixelmatic. He is also the CEO of bitcoin technology firm JAN3, which is dedicated to promoting bitcoin and accelerating hyperbitcoinization. In April 2022, the firm signed an agreement with El Salvador’s government and President Naib Bukele to help the country develop digital infrastructure and create Bitcoin City.