Okay, let’s cut straight to the chase. We saw the headlines: Israeli airstrikes in Iran, escalating tensions, and then BAM! Crypto market takes a nosedive. Bitcoin drops but Ethereum drops even more, and more than a billion dollars are suddenly liquidated. As Zander Brown at NFTevening wrote about recently, you likely experienced firsthand the fallout in your portfolio. This is not only a matter of avoiding red ink on a budget. This goes to the heart of what crypto is all about.

Centralized Exchanges Betray Crypto's Promise?

Think about it. Why did the market react so violently? Did the code suddenly change? So maybe the vision of decentralized finance isn’t as appealing all of a sudden. No. The problem lies in where most of us actually use crypto: centralized exchanges like Binance. One geopolitical event halfway around the world, and boom — your assets are in jeopardy. Is this really the decentralized future we are told to expect?

These exchanges, these behemoth conglomerates, are vulnerable to pressure. Political pressure. Regulatory pressure. The very same pressure that’s able to freeze accounts, stop trading and in the end, dictate your access to your assets. What we’re discussing here is understanding how governments can provision these exchanges, particularly should the conflict widen. Then they’ll say, well, you know, claim it’s national security or preventing the funding of terrorism or whatever nonsense, whatever rationalization they can come up with. The result is the same: your financial sovereignty is compromised.

Now, let's zoom in on something particularly vulnerable: NFT royalties. This is where the fun really starts, but to be honest, so does the fear. Now, perhaps, put yourself in the shoes of an artist living in a conflict zone. You think you can sell your art as NFTs and depend on NFT royalties to earn a living. When those royalties are funneled through antiquated, centralized marketplaces what then? What happens if those marketplaces are put under pressure by their governments or by international organizations? Or alternatively, they could decide to halt payments entirely to certain states or municipalities.

NFT Royalties Frozen in Conflict Zones?

This isn't some far-fetched hypothetical. Yet we have already witnessed outbreaks of such censorship by platforms, motivated by political concerns. Freezing royalties would be a cynically opportunistic, opposite extension of that. This is both outrageous! This impending disaster underscores the significant dangers of relying on corporate-controlled, centralized platforms for all aspects of creator revenue. This isn’t a mere debate over dollars and cents, it’s about artistic sovereignty, economic liberation, and the tenets of Web3 itself.

So what’s the answer, anyway—yes or no? The answer isn’t to give up on crypto, it’s to recommit ourselves to the principles of decentralization. In order to build a better future, we need to divest our attention from these established giants and invest it into some actually decentralized alternatives.

  • The Problem: Centralized NFT marketplaces can restrict or freeze royalty payments.
  • The Consequence: Artists in conflict zones lose their income and autonomy.
  • The Question: Is this the decentralized future we envisioned?

Decentralization or Bust? The Only Solution

Think about decentralized exchanges (DEXs). These platforms aren’t merely an extension of government speech—they’re a government speech, censorship, and control attack helicopter immune to central authority. Consider self-custody solutions, where you — and only you — control your private keys. Consider alternative governance models that put communities in control, so decisions aren’t left up to one company’s whims.

We want to grow a crypto ecosystem that is broadly resilient, censorship-resistant, and genuinely decentralized. An ecosystem where artists can receive royalties without fear of political interference, where individuals can access financial services without government permission, and where the promise of a truly borderless, permissionless financial system is finally realized.

This isn't just about making money. It's about building a better future. Envision a world where individuals can control their own destinies. In this imagined world, artists are free to create boldly without the fear of censorship, and all people experience genuine economic liberation regardless of where they live.

The Iran strike crypto crash was the reality check we needed. It laid bare the weaknesses that come with the highly concentrated, interconnected, and opaque nature of large swathes of the crypto world. Let’s do real decentralization — before it’s gone. The future of crypto, and maybe the future of freedom overall, rests on it.

The Iran strike crypto crash was a wake-up call. It exposed the vulnerabilities inherent in the centralized nature of much of the crypto world. It's time to embrace true decentralization, before it is too late. The future of crypto, and perhaps the future of freedom itself, depends on it.