Cardano founder Charles Hoskinson has warned investors that more pain is coming from the recent collapse of cryptocurrency exchange FTX. He also noted that the incident would attract more regulatory scrutiny.

In his latest YouTube video, Hoskinson argued that the collapse of FTX was not the failure of crypto itself, but rather the loss of the flawed and centralized infrastructure around the platform.

“Crypto didn’t fail. People failed. People in positions of trust. At the end of the day, as much as we like to believe in the principles of cryptocurrency, this had everything to do with people putting their money in centralized exchanges and organizations entrusting centralized businesses to do something on their behalf," he said. 

He noted that the fallout of FTX will likely lead to increased scrutiny of the crypto industry. "There’s a very high possibility that the fallout of this will be new legislation, hopefully decent legislation, but there’s a strong possibility that it won’t be."

(by Ruholamin Haqshanas)