Samson Mow argues that the failure of major cryptocurrency players like FTX or, in a best-case scenario, other major exchanges and players, won’t be enough to destroy Bitcoin.
A significant decline in the price of Bitcoin has been caused by the failure of FTX, but Samson Mow, a proponent of Bitcoin, says that this does not imply that BTC can be destroyed by failing cryptocurrency companies.
The FTX contagion wave is still being felt by the cryptocurrency market, and it is possible that it may see further crashes very soon, Mow said in a recent interview with Cointelegraph.
The CEO Pixelmatic claimed that the Terra ecosystem collapse, which had a cascading effect on the industry and large crypto lenders like Celsius and Voyager, could be a factor in the FTX contagion.
“More things like this will continue to happen in the crypto space because all of these projects are worthless houses of cards,” Mow predicted. FTX’s relationship with Alameda, he continued, made its failure “easy to see coming.”
“A general rule of thumb is if a company prints a token out of thin air and either sells it to retail, or relies on it as an asset, you should expect them to collapse eventually,” JAN3 CEO stated.
The industry’s efforts to establish credibility, such as exchanges disclosing more and more proof of reserves, according to Mow, are futile unless they can also demonstrate liabilities. “Any system that can be gamed, will be gamed,” he remarked, alluding to players who fake their reserves by moving money around between one other immediately before presenting a proof,
“Then you have to factor in the fiat side — which would require an audit, but that may not be useful either as FTX also had an auditor,” he noted.
The worst-case scenarios are possible for some of the biggest crypto enterprises in the world as the FTX epidemic spreads throughout the industry. In response to the hypothetical scenario in which crypto juggernauts like Tether or Binance fail, Mow expressed certainty that Bitcoin is built to overcome any problem, saying:
“Bitcoin will overcome any issue simply due to its design and the irrefutable need for sound money in human civilization. The failure of any giant would only be a temporary setback, just as Mt. Gox’s impact is no longer of relevance.”
The executive added that despite the industry revealing the worst risks of centralized exchanges during Bitcoin’s initial fall back in 2011, newbies to the cryptocurrency are likely to continue making the same mistakes in the future.
Mow is a prominent proponent of Bitcoin, the CEO of the Bitcoin technology company JAN3, which is dedicated to advancing hyper-Bitcoinization, and the founder of the game development company Pixelmatic.
The former chief strategy officer of Blockstream struck a deal with the country’s government and president Nayib Bukele with the goal of assisting El Salvador in creating its own digital infrastructure and launching Bitcoin City using the JAN3 platform.