The bailout fund from Binance is a disgrace for crypto and its history

As you probably know, Binance pledged 2$ Billion to bail out "distressed crypto projects". First this may look promising, because obviously this might help investors that fall victim to bad actors like FTX in the future. But does anyone remember why we have crypto in the first place?

Banks gamble with money, but they are too big to fail at the same time. Whenever a bank goes bust, a government will bail them out. With tax money. While all their gains are private, their losses are literally paid by the public.

The idea of BTC was most likely born during the financial crisis of 2008. When Satoshi Nakamoto created the Genesis block of BTC, he embedded a recent news headline to prove the block was not premined very long ago. This message was:

The Times 03/Jan/2009 Chancellor on brink of second bailout for banks

Satoshi choosing this headline was very likely no accident, it was a message to everyone showing why we needed something as Bitcoin.

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Fast forward to today. "Crypto" companies like FTX were thinking they were the banks of the new world order, being able to play the same games as banks. However in crypto, that doesn't go unnoticed. And when things started to smell fishy, people wanted their coins back. But in crypto, no one will bail you out if things go wrong.

Crypto projects shouldn't take huge amounts of debt and they shouldn't gamble with their customers money. They should be the exact opposite of the traditional financial world. If a crypto company or project goes bankrupt, they deserve it. A bad actor shouldn't be bailed out.

Now one could say that the customers deserve their funds back - but this would also send a totally false message. People need to finally understand they don't own crypto when holding at exchanges, and lending will ALWAYS come with the risk of 100% loss, no matter what the companies claim. Risk management is a thing and you should never invest everything in a single project.

However the scary part about this is Binance being the provider of this bailout fund. Binance has a completely broken perception of the term "decentralized", CZ is even calling Binance a decentralized company. However in reality Binance is not only the heaviest centralized entity in the entire crypto space, it appears like they stop seeing themselves as an "exchange", but more as an upcoming "crypto government". It's not enough for them to be the biggest exchange, they also want to make the rules of the this space.

This development goes completely against the fundamentals and history of crypto, it's a huge disgrace for the entire space. I'm not at all against protecting investors - but this really shouldn't be handled by a company which competes with everyone else the same time.