Crypto Ecosystem Faces Centralization Risks and Scam Concerns
Crypto Ecosystem Faces Centralization Risks and Scam Concerns
Recent events have highlighted dual vulnerabilities within the cryptocurrency ecosystem: a reliance on centralized cloud infrastructure and the persistent threat of scam tokens. A second AWS outage this month has reignited fears over crypto's cloud dependency, challenging the narrative of Web3's decentralization. Concurrently, reports surfacing about political figures, such as Argentina's President Milei, having past associations with alleged scam tokens like KIP and LIBRA, underscore ongoing issues with market integrity and investor protection.
A second AWS outage this month reignited fears over crypto’s cloud dependency, revealing how centralized infrastructure still underpins much of Web3’s supposedly decentralized ecosystem.
Before LIBRA unraveled, President Javier Milei had already tested the waters with KIP — a smaller but nearly identical crypto scheme involving the same players and money trail that now fuels Argentina’s widening investigation.