ConsenSys Economist Still Hopeful For Crypto After FTX Crash. Lex Sokolin said that the company can be successful if people create useful applications based on blockchain technology.
The decision of the crypto exchange FTX has shocked the company financially and led to a “breakdown of confidence” in the world of digital assets, Lex Sokolin, chief economist of the informal contract system in the company said ConsenSys Economist software. Still, Sokolin told CoinDesk TV’s “First Mover” on Tuesday that “price is not the end point” and the future of crypto should not depend on today’s market.
“They can be an expression of value … but that’s not what you’re trying to promote for,” Sokolin said. “What you’re trying to promote is people building new, useful things with embedded technology.”
He added that the long-term trajectory of crypto depends on new technologies that push “to the limit of what is possible.”
At the same time, Sokolin said that he is afraid that people will stop seeing “cryptoeconomics as a legitimate field” and start “losing confidence”, giving the example of Solana.
On Monday, Solana Foundation said it has more than $135 million in SRM tokens and around $3.4 million in FTT tokens locked in the FTX exchange. FTX founder Sam Bankman-Fried is a strong supporter of Solana and Serum, an exchange built on the blockchain. Both were hurt by Bankman-Fried’s embarrassment. “I’m concerned that the lack of trust in Solana’s environment will lead to a lack of trust in the model,” Sokolin said.
Despite the turmoil from FTX, the Bahamas exchange that filed for Chapter 11 bankruptcy last week and is in court, Sokolin said it is important to consider “organic trading” in crypto, noting that blockchains like Ethereum continue to “interoperate. .