Home
News
- Erik Voorhees found SpaceShift, a digital asset exchange, in 2014.
- ShapeShift founder thinks that DeFi solves the problems regulators are trying to control.
- He entered a debate on cryptocurrency regulators with Sam Bankman-Fried.
DeFi is The Ultimate Problem Solver
Erik Voorhees, founder of SpaceShift cryptocurrency exchange, used FTX crypto exchange’s fall to express his take on decentralized finance (DeFi). In a blog titled ‘Sophistry and Savior’ he says that the DeFi has already solved trust issues in the monetary markets.
According to Voorhees the latest havoc, that vanished the FTX exchange overnight, would be impossible in the DeFi ecosystem. He also addressed that the sector is immune to re-hypothecation, reason behind the fall of Celsius Network, and other similar issues creating chaos in traditional finance.
The SpaceShift founder has asked the authorities to think calmly about whether they really understand decentralized finance before implementing regulations in space. He said that the sector undoubtedly takes away the power of regulators but it is resolving the persisting issues that they are trying to regulate, which is much more vital.
Sam Bankman-Fried, the talk of the town during the past few days, and Erik Voorhees entered a debate on crypto regulations via Twitter. He vehemently disagreed with some suggestions in the blog SBF posted a few weeks earlier before his fall. He offered some suggestions like limiting hacker bounties to a certain percentage, restrictions regarding accessibility to DeFi platforms and more.
Erik Voorhees said that imposing regulations on the decentralized exchanges like Uniswap would kill the purpose of the platform it was meant to serve. The debate reflects a generation gap among the individuals in the cryptosphere. On one hand, the OG Erik Voorhees is keen on the decentralized aspect the crypto sector can offer, while Sam Bankman-Fried is more focused on big finance.
Sam Bankman-Fried has frequently contributed to various political campaigns in the past. He is among the individuals trying to loosen the tightening grip of regulators on the sector. SEC, the US monetary watchdog, remains the biggest rival for the crypto industry in terms of regulations. The government organization thinks that the sector is a “Wild West” in the financial space.
The recent collapse of SBF-backed FTX has brought the individual down to his knees. It all started with the announcement by the largest crypto exchange that they will dump all their FTT token holdings, creating a chaotic scene in the space. Bankman-Fried said that they are falling short of around $6 Billion in withdrawal requests from their clients.
This led the largest crypto exchange’s owner to come out and offer a helping hand to FTX. But they immediately fell back after announcing that the situation is beyond their help. FTX Group has already filed for Chapter 11 of the Bankruptcy Code and SBF resigned as the company’s CEO following his organization’s fall.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
