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  • By The Financial District

FTX, Crypto Bust Proves Capitalism Is Always Wrong

Investors have been led astray by misleading signals from the market. It enticed them to go "all in" on centralized exchanges rather than focusing on real-world use cases for tokenized value exchange, Michael J. Casey wrote in his column Money Reimagined in CoinDesk.


Photo Insert: Casey’s apologia for the industry comes a tad late as the latest Reuters investigation is zeroing in on the opacity of Binance, which refused to salvage FTX after offering to buy its rival crypto exchange



“Capitalism failed crypto. Or perhaps they failed each other. No, I’m not trying to exonerate Sam Bankman-Fried and all those who have abused people’s trust and destroyed faith in this industry. And, no, I’m not a Communist. I am as strong a believer as any reasonable reader of history that market economies do a far better job of allocating capital than centrally planned ones,” Casey argued.


“I just want to acknowledge that capitalism doesn’t always deliver desired results. For its “invisible hand” to work, the market needs to be open and competitive. For the reliable, constantly adjusting price signals that economic actors need to form well-reasoned investment decisions, there must be sufficient information about the factors behind the demand and supply conditions determining those prices.”



Casey’s apologia for the industry comes a tad late as the latest Reuters investigation is zeroing in on the opacity of Binance, which refused to salvage FTX after offering to buy its rival crypto exchange, and how it had kept its financial data from regulators in 14 jurisdictions.


Casey’s theory of the allocative efficiency of capitalism falls into a rabbit hole as the worst practitioners of unbridled capitalism, from Ayan Rand’s fictional character John Galt to Elon Musk, Sam Bankman Fried, and Changpeng Zhao of Binance, want to choke regulation and eviscerate the state.


All the news: Business man in suit and tie smiling and reading a newspaper near the financial district.

Scams thrive due to the lack of a “free market” and no less than George Soros declared that the market is “always wrong” since market players like him intervene in the market. The vaunted “invisible hand” of the market is as visible as Bernie Madoff, the Wall Street short sellers and the speculators.


Casey admits that the entire industry is sick.


Market & economy: Market economist in suit and tie reading reports and analysing charts in the office located in the financial district.

“I’m not just talking about FTX’s mind-boggling accounting practices (or lack thereof). I’m referring to what we knew, or didn’t, about the conditions driving the soaring token prices that attracted millions of retail customers into multiple crypto exchanges and lending platforms, inflows that spun up billions of dollars in fees and, by extension, attracted great gobs of venture funding to those companies. We’re all astounded that FTX, now essentially worth nothing, was valued at $32 billion a few months ago, and that lending service Celsius Network clocked in at $3.5 billion before it went under. But we should be asking similar questions about the investments and deposits that poured into Binance, Coinbase, Kraken, Crypto.com and other such exchanges,” he argued.



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