Bill Hwang may be a criminal, or he may have simply been playing the Wall Street game according to a set of unwritten but accepted rules – after all, in this day and age, cheating and lying are practically qualifications for working in high finance. Crypto has the distinct advantage of transparency – Hwang couldn’t have caused as much damage if he hadn’t concealed his levels of concentration and leverage. In most cases, similar behavior by a layer 1 or other protocol would be much more visible. The question is whether traders and investors are paying enough attention to what’s right there on the blockchain to avoid a replay of Archegos, in crypto form.
