Vitalik Buterin: Ethereum is completely different from FTX, with decentralization and community-driven aspects being the core differences.

At the Devconnect conference held in Argentina in November 2025, Ethereum co-founder Vitalik Buterin sharply compared Ethereum with the bankrupt exchange FTX, emphasizing that the former is based on core principles of Decentralization, “cannot be evil,” and community-driven, which stands in complete opposition to the latter.

Vitalik Buterin criticized FTX founder Sam Bankman-Fried's remarks about “doing good through cryptocurrency,” pointing out that a centralized structure inevitably requires users to trust blindly, while Ethereum achieves “trustworthy neutrality” through open and transparent community governance. Although the price of Ethereum has fallen 39% from nearly $5,000 in August to below $3,000, Buterin believes that technical principles are more important than short-term price performance.

Lessons from the FTX Collapse and the Value of Decentralization

Vitalik Buterin directly showcased Sam Bankman-Fried's quote “I entered the cryptocurrency space because I wanted to create the maximum impact for global good” during his keynote speech, mocking his hypocrisy. He pointed out that the centralized structure of FTX is the root of systemic risk: user funds custody, trade execution, and asset pricing are completely controlled by a single entity, lacking transparency and checks and balances.

In contrast, the validator network of Ethereum is distributed across 83 countries worldwide, with the top three entities controlling less than 33%. Any upgrades must go through community proposals, testnet deployments, and multi-client implementation processes. This decentralization is reflected not only in the technical aspect but also throughout the governance process—major upgrades such as EIP-1559 and The Merge have undergone years of discussion and testing. Vitalik Buterin emphasizes: “The focus of decentralized technology, the focus of blockchain is that you don't need to trust them.”

Comparison of the Philosophy of “Can't Do Evil” and “Don't Do Evil”

Vitalik Buterin deeply compared two different technical ethical views. The “Don't be evil” ( model advocated by FTX and its early investors relies on corporate self-discipline and regulatory constraints, while Ethereum's “Can't be evil” ) architecture guarantees system behavior through mathematics and cryptography.

He illustrated that FTX could arbitrarily misappropriate user assets to Alameda Research, while once deployed, Ethereum smart contracts cannot be modified even by their creators. This verifiable neutrality is reflected in decentralized exchanges like Hyperliquid — a platform created after the collapse of FTX, with daily trading volume surpassing $1.2 billion, demonstrating a growing user preference for non-custodial solutions. Vitalik Buterin believes that trust-minimized systems are more resilient than business models that rely on the “good person assumption”, especially during times of crisis.

( Comparison of Core Features between Ethereum and FTX

• Architecture Model: Decentralization Verification vs Centralized Control
• Trust Model: Code is Law vs Trusting Third Parties
• Governance Method: Community Consensus vs Company Decision
• Transparency: Verifiable on the entire chain vs opaque ledger
• Failure Impact: Partial Failure vs Systemic Collapse

The Essential Difference Between Community and Company

Vitalik Buterin emphasized the structural differences between a “community” and a “company.” A company centralizes power and profit among shareholders, operating on a “hub-and-spoke” model; whereas a community is a network structure where participants directly create value for each other.

In the Ethereum ecosystem, core developers, application teams, node operators, and users each have their roles, with no single point of control. This structure, while leading to lower decision-making efficiency, avoids the risk of a single point of failure.

Data shows that Ethereum's GitHub has over 6,800 active contributors, with the top 10 developers contributing only 23% of the code, while the collapse of FTX stemmed entirely from decisions made by a few executives. However, this decentralization also brings challenges—Ethereum's price has dropped 39% from its August peak, partly due to community disagreements over the pace of technological upgrades, while a corporate structure can typically respond more quickly to market changes.

Divergence Between Ethereum Market Performance and Technical Progress

Despite Vitalik Buterin's emphasis on principle first, the market performance of Ethereum is indeed concerning. The price has fallen below $3,000 for the first time since July, a 39% decline from its historical high of $4,891, slightly worse than Bitcoin's 30% drop.

On-chain data is also weak: Ethereum's daily transaction volume has dropped from $3.2 billion in October to $1.9 billion, with average Gas fees decreasing to 8 gwei, indicating reduced demand.

However, technological progress is still accelerating: EIP-7738 is about to be implemented, separating the consensus and execution layers, enhancing the flexibility of network upgrades; the Pectra upgrade testnet has been launched, introducing key features such as account abstraction and Verkle trees. This divergence between fundamentals and price has occurred multiple times in Ethereum's history, often providing long-term investors with opportunities to position themselves.

The Rise and Challenges of Decentralization Exchanges

The collapse of FTX indeed pushed for the adoption of decentralized exchanges )DEX###. Uniswap's monthly trading volume reached $48 billion in Q3 2025, a year-on-year increase of 35%; derivatives DEXs such as dYdX and Hyperliquid have seen even more rapid growth.

However, DEX still faces many challenges: security vulnerabilities in cross-chain bridges have led to a loss of $320 million in assets by 2025, the risk of centralized front-end interfaces still exists, and the user experience is still not as good as centralized platforms. Buterin acknowledged these shortcomings but believes the solution is to improve the decentralized technology stack, rather than reverting to a centralized model. The Ethereum Foundation is funding several research teams to tackle cross-chain security and account abstraction, with key breakthroughs expected by 2026.

Ethereum Investment Insights and Ecosystem Assessment

For investors, understanding Ethereum's “anti-FTX” characteristics has important practical significance. While decentralized systems avoid the risk of individual malfeasance, they face challenges of collective decision-making inefficiency and technical complexity.

From a valuation perspective, the annual fee income of the Ethereum network is $9.8 billion, with a price-to-sales ratio of (PS) only at 3.9, lower than the average level of traditional tech companies. The staking yield remains at 4.2%, providing a continuous cash flow for investors. Long-term investors are advised to pay attention to several key indicators: the total locked amount in Layer 2 is currently $72 billion (, the daily active addresses are 138,000 ), and developer activity. Although short-term prices are under pressure, Ethereum's position as the core infrastructure for decentralized applications remains unshaken.

When a technology takes “trustlessness” as a design principle, its value proposition transcends price volatility and technical indicators. Vitalik Buterin's criticism of FTX is not only a reflection on the past but also a declaration for the future — where centralized failures occur, decentralized systems are building a more resilient digital economic foundation through mathematical proof and community consensus.

FAQ

How does Vitalik Buterin compare Ethereum with FTX?

Vitalik Buterin believes that Ethereum's core principles of decentralization, “do no evil,” and community-driven governance stand in stark contrast to FTX's centralized control, “don't be evil,” and corporate operation.

What is Ethereum's “cannot do evil” feature?

System behavior is guaranteed through mathematics and cryptography. Once deployed, smart contracts cannot be modified by the creator, and users do not need to trust any individual or organization; they only need to verify the execution of the code.

What impact does the FTX collapse have on decentralized exchanges?

Accelerating DEX adoption, Uniswap's monthly trading volume reached 48 billion USD, with derivatives DEXs like dYdX and Hyperliquid experiencing rapid growth, reflecting users' increasing preference for non-custodial solutions.

How is the current market price performance of Ethereum?

Ethereum price fell below $3,000, a 39% retracement from the historical high of $4,891 in August, but technical development is still accelerating, with EIP-7738 and Pectra upgrades continuing to advance.

What is the fundamental difference between a community and a company?

The company is a “hub-and-spoke” structure where power and profits are centralized, while the community is a networked system where participants directly create value for each other, without a single control point but with lower decision-making efficiency.