Bridges are crypto’s next FTX waiting to happen
Cross-chain bridges concentrate risk and centralize trust, creating vulnerabilities that could trigger a systemic crypto crisis under stressed market conditions.
Opinion by: Kadan Stadelmann, chief technology officer of Komodo Platform
Crypto didn’t get wrecked by regulators or some shadowy conspiracy. The industry did this to itself. It handed control of cross-chain liquidity to a handful of intermediaries, who it called “bridges,” wrapped assets in slick tickers, and pretended that was decentralization.
Every time one of these house-of-cards systems collapses, billions vanish, and the rest of the industry shrugs, as if these were isolated accidents instead of warning sirens blaring across the ecosystem.