Big Technology Podcast Crypto After FTX — With Kate Rooney
Jan 11, 2023
Kate Rooney, a CNBC star reporter who has closely covered the crypto industry, shares her insights on the collapse of FTX and its implications for the future of cryptocurrency. She discusses the crumbling promise of 'trustless' finance and the critical need for consumer trust. Rooney explores the struggles of reporting in a volatile space, the financial fallout from the scandal, and the ripple effects on firms like Binance. Her perspective sheds light on the urgent lessons for investors and the industry as a whole.
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Crypto's Contradiction
- Crypto, especially financial products, initially promised to be trustless.
- Ironically, big players built companies on this trustless revolution by requiring trust.
Crypto's Ironic Dependence
- The 2008 financial crisis spurred crypto's creation, aiming to eliminate intermediaries like banks.
- Ironically, mainstream adoption still relies on trusted on-ramps, negating the initial intent.
Celsius's Marketing Deception
- Celsius CEO Alex Mashinsky marketed against banks, attracting users wary of traditional finance.
- Many customers, drawn by high yields, treated Celsius like a bank, overlooking the risky lending practices.