John Oliver explores the downfalls of the crypto company

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During last night’s episode of Last Week Tonight with John Oliver, Oliver discussed cryptocurrency, in particular three of the biggest companies that have crashed in the last year, including Terra, Celsius and FTX.

Click on the embedded video below to watch some of the highlights from last night’s show.

Oliver started by giving a bit of background on cryptocurrency and how the business works in general.

Oliver first explored Terra, a cryptocurrency launched in 2008. He watched how even the company’s founder, Do Kwon, admitted to the volatility of the crypto space.

The way Terra worked was to create a stablecoin, ensuring that one unit of Terra would always equal $1. Although the company’s business model for doing so is absurd, Oliver said.

Oliver continued the segment by talking about crypto banks, specifically Celsius, and how crypto banking would try to dissuade people from using traditional banks because traditional banks are not your friends.

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When Celsius finally collapsed, their customers were injured. Under the company’s terms of service, when clients deposited their crypto assets into a Celsius account, they transferred all ownership rights to the company. Oliver noted that while traditional banks might not be your friend, Celsius can actually be your enemy.

Finally, Oliver reviewed FTX, a cryptocurrency exchange that made crypto trading easy, albeit in hindsight how the company announced many red flags.

Also after the collapse of FTX, the new CEO of the company described how everything was going wrong.

Even though each of the three companies fell apart, Oliver said everyone behind them was still trying to pull through.

Finally, as Oliver admitted that he generally sees regulation as a solution, in this case with cryptocurrency, he doesn’t think it’s a good idea. The danger, he said, is that regulation could give the crypto industry more legitimacy, make risky investments safer, and encourage more institutions to invest in crypto.

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