RE: Goodbye FTX Contagion! Hello Regulators!

The Winklevoss twins played it fast and loose. They offered a service under the pretenses that it was zero-risk, and then the entire thing goes belly up because oops, looks like there was massive counterparty risk the entire time after all.

I agreed with a lot of this, but not this. I had money in the EARN program. I read the risk online and they stated there were risks. I also pulled out most of my money because of everything that was happening with the whole Luna debacle, followed shortly by the FTX shenanigans. What a mess. Shortly after that, all funds were currently "locked up" or just inaccessible. Luckily I only got stuck holding the bag on some 1inch I had left in there. If you read the user agreement though, there was some risk and the risks were outlined. It was a loan program with a risk of insolvency. People should have at least understood that much.

As you stated, the current state of regulation seems like a kick in the nuts from the government after the fact. Definitely seems like kicking a guy while he's down. My fear has never really been regulation it has always been "over-regulation" and not being treated fairly. That is what I think is happening here. We're lumping new financial instruments in with old systems that are quickly being outdated. These new technologies and new financial instruments need "NEW" regulatory clarity. This current shitshow has to end though, it just keeps getting worse and the government IS NOT HELPING! Frankly, I don't think most of these people are even qualified to regulate an industry and technology they can barely comprehend. The whole thing is pretty horrifying when you look at the big picture.

I could go on, and on. Regulations are unavoidable, but everyone should be concerned about any of these people regulating a space they can barely even understand.