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Can Proof of Reserves Prevent Another FTX-Like Collapse?
The collapse of FTX showed investors the risks of trusting an exchange with their assets without knowing how those funds are being managed. Proof-of-reserves systems allow crypto platforms to provide on-chain evidence of the assets they hold, although they do not always reveal the full picture of a company’s liabilities. As more exchanges adopt these systems, can proof of reserves genuinely improve investor confidence, or is greater transparency still needed?
When Does a Crypto Project Become "Too Big to Fail"?
Some crypto projects have grown into massive ecosystems with millions of users, billions of dollars in assets, and widespread institutional backing. Bitcoin and Ethereum, for example, have survived multiple market crashes and continue to dominate the industry. However, the collapse of major players like Terra and FTX showed that size alone does not guarantee survival. In a rapidly evolving industry, can a crypto project ever become truly "too big to fail," or is every project replaceable given enough time and competition?