The Key Man Problem in Cryptocurrencies?: Case of QuadrigaCX
Notes on the 21st Century (CBRI), 2019
10 Pages Posted: 15 Feb 2019
Date Written: February 5, 2019
The key man problem refers to the economic risk of concentrating powers in a single individual at the apex of an organization. While a common consideration in traditional finance, such a problem would hardly seem representative of the decentralized, immutable, and “trustless” technology underpinning blockchain and cryptocurrencies. This discussion paper examines how the actual systems of exchange in the domain of cryptocurrencies can indeed face the key man risk, using a case study of QuadrigaCX. The paper suggests that key man risk challenges the implementation of cryptocurrencies in praxis, thereby tying traditional finance risks to alternative digital-financial assets.
Keywords: Bitcoin, Cryptocurrency, Cryptoanarchism, Smart Contracts, Finance, Exchange, Key Man Risk
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