Four months behind bars and a massive fine, that’s what CZ is getting from the government for his crypto exchange’s misdeeds. Regardless of how you view the verdict — too much, too little, just right — his sentencing is a big deal for web3. Potentially in a positive way.
There’s effort by some in crypto to promote the technology element of blockchains over their well-reported ability to generate new gambling opportunities. Chris Dixon of a16z frames this in ‘computer v casino’ terms, which I think is reasonable.
If you are in favor of the computer over the casino you probably want the crypto market to be as in-line with financial norms as possible. Why? Because that means that crypto can itself sit very close to the larger world economy, and thus the computing elements of blockchain tech can shine, attract investment, and provide the most use. If you are more in favor of the casino side of the conversation — line go up, memecoins, bitcoin maximalism, etc — you might not be a fan. After all, to get close enough to kiss tradfi and normal business operations so that the web3 computer can reach its full potential, you might wind up with more tokens as securities than many crypto advocates wish.
Regardless, CZ’s case is now sorted. SBF’s as well. What is the next chapter for crypto going to be?