Why the cryptocurrency sector must eradicate the cult of personality

“Look, I tousled.” So shrugged Sam Bankman-Fried, higher generally known as SBF, as he tried to clarify how FTX contrived to lose $8 billion of buyer funds.

For viewers of the November 30 interview with Andrew Sorkin, it was fluffy and farcy stuff — not as a result of SBF had something believable or remotely coherent to say, however as a result of it was car-crash tv.

And mainstream media seemingly can’t get sufficient of this endorphin-tickling stuff. If there’s one factor the fluff media loves, it’s a hero-to-zero story … adopted by a season-long redemption arc.

First, we construct up our leaders into messianic beings. Then, we knock them again down, elect a alternative and repeat advert infinitum.

In Mr Bankman-Fried, the business has met its ​​bete noire — a satan whose each stumble have to be watched by means of the cracks within the fingers of 1 hand whereas shovelling popcorn with the opposite.

Because the adage goes, by no means turn out to be the primary character within the crypto present. It doesn’t finish properly. This season’s leisure has been courtesy of Mr Bankman-Fried and his merry band of hyper-stimulated hangers-on.

Whereas there’s each cause for the cryptocurrency business to be concurrently transfixed and repulsed by his actions, it’s a behaviour that should cease.

Till individuals within the business cease worshipping idols with toes of clay, they are going to proceed to be led astray by glib grifters.

Irrespective of how true their intentions (for even Mr Bankman-Fried should have acted in good religion as soon as), fallible males will inevitably fall, and when these males are accountable for the digital belongings of hundreds of thousands, the collateral injury is colossal.

In cryptocurrency, the actual rewards come to those who deal with constructing decentralised networks and drive adoption.

Communities are extraordinarily essential. In the event you don’t serve your group, you’ll be ousted, as Mr Bankman-Fried was.

We shouldn’t be glorifying or spending any extra time on corrupt, deceiving, mendacity individuals.

It is crucial that, as an business, we get again to constructing decentralised networks and superior merchandise, and reward these which might be constructing environment friendly, decentralised, clear and inclusive options.

Each political revolution — from either side of the spectrum — has been hamstrung by its creation of sturdy leaders.

The monetary revolution instigated by the Bitcoin white paper in 2008 is enjoying out the identical manner: a promising thought impaired by the individuals overseeing it.

There’s something about human nature that compels us to place individuals on pedestals. Then, once they stumble, we be part of the mob in administering a well-deserved kicking.

Lastly, having vowed by no means to make the identical mistake once more, we promptly neglect every part we have now learnt.

The second one other smooth-talking salesman rides into city promising to treatment all our ills together with his peculiar model of snake oil, we swoon.

Mr Bankman-Fried, Caroline Ellison, Alex Mashinsky, Su Zhu, Kyle Davies, Do Kwon, Barry Silbert — not one of the protagonists from this 12 months’s drama have emerged with their reputations untarnished.

Cryptocurrency wasn’t meant to have sturdy leaders. Which is why the nameless founding father of the motion, Satoshi Nakamoto, did his bit to safe its survival after which exited the stage.

Desperately searching for Satoshi Nakamoto

Bitcoin’s creator knew that it was higher to fade away than to burn out.

No ignominious “gotcha” second through which the lead character’s sins are laid naked; solely a sluggish slink into obscurity, by no means to be heard from once more.

Earlier than he left us, although, Mr Nakamoto mentioned: “The foundation drawback with standard forex is all of the belief that’s required to make it work. The central financial institution have to be trusted to not debase the forex, however the historical past of fiat currencies is stuffed with breaches of that belief.”

“Banks have to be trusted to carry our cash and switch it electronically, however they lend it out in waves of credit score bubbles with barely a fraction in reserve. We now have to belief them with our privateness, belief them to not let id thieves drain our accounts.”

Watch: what’s Bitcoin and the way did it begin?

He couldn’t have recognized that 12 years later, cryptocurrency could be working its personal fractional reserve system and defrauding its prospects in the identical manner because the central banks it was designed to switch.

Mr Nakamoto could have light into the background however Mr Bankman-Fried flew too near the flame. After which he burnt to a crisp, taking the entire constructing down with him.

The earlier cryptocurrency can get away from its cult of persona, the earlier it might turn out to be the censorship-resistant, shock-impervious, honey badger-esque decentralised juggernaut it was at all times meant to be.

A leaderless cryptocurrency group isn’t the stuff that Netflix field units are product of. However what the business could lose in bingeability, it’s going to greater than make up for in monetary stability.

Belief nobody. Idolise nobody. Be hoodwinked by nobody. It’s actually not that arduous.

Stefan Rust is the founding father of Laguna Labs, a blockchain improvement home, and former chief govt of bitcoin.com

Up to date: December 07, 2022, 4:00 AM