We’re not just talking about open source, though. Crypto is propped up by billions of dollars from some of the most powerful people on the planet. The fact that funds like Sequoia and a16z are showering crypto companies like FTX with money — while doing minimal due diligence and without taking any meaningful action to fight scammers — is incredibly revealing.
But even insofar as we are talking about “little guys”, so to speak, one very simple thing they could do would be to actively call out people and projects that are scams.
I imagine the ability of those in crypto, big or little, to identify or pursue criminality will remain limited. The problem hasn't been solved in traditional finance. SBF testified in front of Congress. I have no attachment to FTX and didn't even know its name a week ago, but it seems pretty legit knowing that one fact.
As for Tether, a few moments of reflection on how a stablecoin stays stable in crypto should be enough for people to worry. I won't even go into the trust placed in exchanges. But there is evidently an endless supply of fiat that will continue to go into these scams.
Perhaps a better focus would be on pursuing negligence on the part of the founders and investors such as Sequoia and a16z. Frequently these scams are only obvious after they fail and are merely unprovable suspicions before.
But even insofar as we are talking about “little guys”, so to speak, one very simple thing they could do would be to actively call out people and projects that are scams.