- Jump Crypto’s president Kanav Kariya called former FTX CEO Sam Bankman-Fried a “false messiah.”
- He said that trust has been shattered in and out of the industry.
- Kariya believes the negative consequences of the FTX debacle outweigh anything the crypto industry has to offer.
- He nevertheless thinks the builders in the crypto industry are coming back and keep building for a better future.
Kanav Kariya, the president of Jump Crypto, one of the largest crypto funds, has called the disgraced former CEO of bankrupt exchange FTX Sam Bankman-Fried a “false messiah” in a Twitter thread published on Sunday.
“A false messiah captivated an audience broader than ever before. Faith in institutions across society has continued to falter, and crypto institutions are no exception,” he said. “FTX’s alleged fraud would have been seen as fraud 100 years ago. The fact that it’s surfaced in an industry predicated on abstracting trust is a cruel trick. Folks across many walks of life are hurt.”
Kariya, whose Jump Crypto has denied having exposure to FTX, said that the recent blowup of FTX has created a lot of trust issues both within the crypto industry and for outsiders thinking of getting into crypto.
“Maybe now more than ever, there’s a great collective pressure to build stronger, faster trust layers. In an environment of degrading social trust, crypto and abstractions of trust are more relevant than ever,” he said.
Kariya, who became the president of Jump Crypto in 2021 at the age of 25, also added that he believes that the shattered trust foundations in the crypto industry have more negative consequences than anything positive the industry can currently offer.
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“The negative consequences of the dissolution of trust bear heavily on our industry, and in my opinion, greatly outweigh the positives. Low trust slows innovation and progress dramatically,” he added.
Nevertheless, Kariya said he thinks that the “natural camaraderie is returning” and that builders are “hunkering down” to build the “world we’ve been working towards.”
“Rebuilding the social contract is going to be tough. Like others, we’re struggling to trust counterparties, trust partners, trust any corner of the system. But we’re determined to try. We don’t have the antidote, but we’re here to figure it out, together,” he concluded.
On the Flipside
- It’s unclear whether Jump Crypto indeed had minimal exposure to FTX.
Why You Should Care
Jump Crypto is one of the largest crypto funds in the industry. Kariya’s thoughts on the FTX bankruptcy show that trust in the industry has been shattered. It’s hard to predict when trust will be restored in the industry if even the largest players are saying that the negative consequences of the past two weeks outweigh crypto’s positivities.
