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.

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