This weekend, we faced another in a long and sad chain of unfortunate events in crypto. Crowd Machine (CMCT) had their wallet hacked and tokens subsequently dumped on the markets sending the token price effectively to zero. At this time, we believe that only uncirculating tokens were stolen, so no token holders actually lost tokens.

But we all lost anyway because now the coin can’t be traded and may need to be swapped with a new token. That’s not a quick and simple process; this will take some time and money to parse out.

The long-term prospects for Crowd Machine probably haven’t changed significantly. In this case, the hack is probably a temporary setback.

But it’s stressful for token holders, and somewhere in that market dump, somebody lost some real money. This is exactly the sort of thing that scares away new crypto investors who read about hack after hack. It also encourages regulators to draft more restrictive rules.

Yes, it’s happened before, and it will happen again. That’s true in any new industry. And we know the industry learns from these events. But it seems like it learns just slowly enough to hurt itself in the long run. We need a concerted effort to improve security, adopt new and better ways to mitigate these events, and improve industry standards.

Regulatory agencies have been on the sidelines for long enough. The crypto industry has been given plenty of time to regulate itself. So far, it has failed to do that effectively.

We have to hope now that, when regulators do step in, they do so with the same optimistic view of blockchain technology and appreciation for some of the innovations that have happened here as those inside the crypto industry have.

That’s a lot to ask for. Regulations have rarely been to anyone’s liking. If we don’t get that desired outcome, the only ones we have to blame for regulatory overreach are ourselves.