Gavin Wood, among others, co-founded Ethereum and Polkadot as well as Parity Technologies.
He says FTX’s implosion offers a chance for crypto to go for “decentralised, trust-free technology.”
Wood announced that he would be leaving Parity as CEO in October. This allowed him to spend more time building Polkadot.

Gavin Wood, the co-founder of blockchain platform Polkadot, says FTX’s failure isn’t a precursor of what’s to come in the crypto sector. It doesn’t count for the future of cryptocurrency, (even if a setback).

He says that the reason for the collapse of the exchange was due to a poorly managed platform, which tried to hide behind an extensive marketing strategy.

FTX was a ‘mismanaged, heavily-marketed’ company

The FTX token lost almost 98% of its value over the past month. This happened because FTX happened. Most people in crypto are extremely upset about this. Of particular concern has been the impact to millions of people who didn’t get out as it became clear the Sam Bankman-Fried led exchange was in trouble.

And then 130 FTX affiliated entities filed for bankruptcy – with all these coming just months after SBF had painted himself as crypto’s ‘white knight.’

But despite the contagion that has followed the FTX fiasco, Wood says the event is nowhere near being a ‘harbinger for crypto.’

According to the Polkadot co-founder, if there’s anything, FTX has demonstrated one thing: the cryptocurrency industry needs to work towards “better decentralised and trust-free technology.” Wood shared his sentiment on Friday.

“I’m sick of hearing crypto confused with a heavily-marketed centralised, mismanaged exchange. FTX’s failure is far from a harbinger of crypto. Quite the opposite: it’s a concrete demonstration of the need for more, better decentralised, trust-free technology.”

I’m sick of hearing crypto confused with a heavily-marketed centralised, mismanaged exchange. FTX’s failure is far from a harbinger of crypto. Quite the opposite: it’s a concrete demonstration of the need for more, better decentralised, trust-free technology.

— Gavin Wood (@gavofyork) November 25, 2022

Wood, who was the co-founder of Parity Technologies and behind the development Polkadot in October, resigned as CEO.

As we mentioned, the Ethereum cofounder stated that his move was to make Polkadot more important. Wood is currently Parity’s Chief Architect. Wood is also the founders of Kusama Foundation and Web3 Foundation.