According to BlockBeats, on August 11, Eswar Prasad, a professor at the Dyson School of Business at Cornell University, published an article in the New York Times, expressing serious concerns about the increasing risks in the cryptocurrency market, and pointed out that regulatory loopholes and centralization are key issues. Prasad said, "If anything, today's cryptocurrencies pose even greater risks to investors and financial institutions than before."
Despite Bitcoin’s recent record highs and support from politicians including former President Trump and current Vice President Harris, Prasad warned that the SEC’s deregulation has made it easier for retail investors to enter the cryptocurrency market, but they often don’t fully understand the risks. Prasad also highlighted the dangers of centralization in the cryptocurrency ecosystem, citing the collapse of FTX and Binance’s legal troubles as examples of how centralized power undermines the fundamental principles of decentralized finance. He also stressed that “risks in decentralized finance could spread to traditional finance and vice versa,” creating vulnerabilities for the entire financial system. Although decentralized finance “inherits the vulnerabilities of traditional finance, it is much less regulated and has many new risks.”
