Balaji said that the FTX collapse was a mere ‘dress rehearsal for the ultimate rug pull’
Balaji distinctly warned of a complete state failure and emphasized that blockchain space would be prepared for it
Balaji Srinivasan is an American entrepreneur, Ex-CTO Coinbase, and Co-Founder of Counsyl
of uncertainties and doubts about the present state of financial systems. In light of these scenarios, a lot of voices can be heard, protesting against centralized organizations that are dealing with public money.
Highlighting the vulnerabilities in the traditional American financial ecosystem, Balaji Srinivasan, a leading crypto investor, shared a series of tweets.
In the tweets, Balaji said that the FTX collapse was a mere ‘dress rehearsal for the ultimate rug pull’ and it gives us a glimpse into how hollow any centralized entity can be without letting the investors know anything about it. Balaji compared the FTX case with the American state that prints trillions of dollars while ‘monetizing the debts’.
Balaji distinctly warned of a complete state failure and emphasized that blockchain space would be prepared for it with its ‘trust minimizing’ mechanisms.
“Treat FTX as a preview of state failure. One day, your USD bank account balance may be frozen or inflated to worthlessness. The authorities will show no interest in prosecuting — they’re the ones who ordered it in the first place. That world is coming and we need alternatives.”, said Balaji Srinivasan.
Balaji called out for the need for a ‘binary classifier with a low false positive *and* false negative rate’, classifying it as the foundation of any decentralized regulation. Balaji is also known for his essay named “The Billionaire Flippening” on the structural societal impact of bitcoin’s ever-increasing price. According to this if the price of Bitcoin will touch a million dollars, the total number of crypto billionaires will surpass the number of traditional billionaires.
Balaji Srinivasan is an American entrepreneur, Ex-CTO Coinbase, Co-Founder of Counsyl, and also the former general partner at Andreessen Horowitz. Balaji also wrote ‘The Network State: How to Start a New Country and is known for sharing his blunt views on present authorities and the future of global finance. Balaji Srinivasan is one of the most prominent voices in the crypto space along with a leading Bitcoin maximalist.