The shady thing in the whole cryptocurrency scheme is the lack of total transparency, aka: lack of regulations.
Without regulations there's absolutely no incentive for them to be transparent, there are tons of perverse incentives to hide and cook the books though.
Re:Ftx.com Has Probably Collapsed
by TimJRobinson on Thursday November 10, 2022 @09:35PM
(#33556675)
DeFi products like Uniswap, Balancer, GMX are all 100% open source and transparent. They can't lock customer funds or collapse because the funds are held by code, not humans who can secretly gamble it away.
It's frustrating that centralized opaque companies keep failing and yet people keep trusting them or lumping DeFi into the same bucket when they are night and day different. Decentralized Finance is the point of Crypto.
The FTT token itself was only used on the exchange to get some benefits like lower fees or free withdrawals and didn’t give any yield at all when staked.
From a risk averse user perspective and someone working in tech, there really wasn’t anything shady going on to suck people in. So them collapsing hurts and is very sad news for the entire ecosystem