The success of decentralized economies will disrupt global governance

I was scrolling through crypto X feeds when I came across an a post talking about Binance supposed ETH price manipulation which caused me to have to reassess a concept we've discussed extensively over the last year.

The market manipulation by market makers like Wintermute and exchanges like Binance. This was a hot topic, which I personally covered some months back, but seeing more of it resurface as ETH rallies again caused me to question the sentiments that has been prominent through times like this.

By this, I am referring to the idea that MMs aren't supposed to manipulate markets and neither should exchanges.

The one question that kept popping in my head was:

Why shouldn't they, is this not a decentralized market?

This is something most people either don't want to acknowledge or simply don't think of when discussing market manipulation across decentralized assets.

The truth is, we are dealing with a new system, things that are generally considered bad and maybe illegal, or perhaps a flaw, could simply be a feature.

We can say that it is unethical, sure, that could be true, but beyond that, it is really just private companies and sometimes individuals leveraging their capital access to participate in the markets of decentralized assets for their benefits.

The fact that they employ strategies that would be unfair to the rest of the market really means nothing, because at the end of the day, it's all fair play, they are equally risking getting screwed over by other market makers, they are many such cases and this is sometimes openly discussed.

As such, discussions that focus on crying foul really doesn't make much sense because unless, for the case of an exchange, users funds are being used to manipulate order books, then it's all fair play. And in the case of market makers working with specific projects where they receive native tokens of said project for market making, it would be a reasonable judgement when said tokens are used to rob the markets in ways that contracts between the MM and project leads did not approve.

Otherwise, we are dealing with decentralized markets where each participant employs unique strategies to maximize profits. It is only to be expected that unethical and exploitative practices would be a present factor.

Knowing this, the logical response would be to rethink market designs to better curb exploits. As a decentralized ecosystem, controlling how individuals act without the right incentives and penalties is near impossible.

This is why I believe that the success of decentralized economies will disrupt global governance, simply because if we are able to achieve regulations set by code that actually works and enables economies grow, sustainably, then it's only to be expected that a push to evolve global governance to decentralized systems will follow.

The cryptocurrency ecosystems has to stop looking for legal aid or safety nets in centralized governments when it comes to things like this. From security of on-chain assets to stability of markets, it's the job of the decentralized protocols to put systems in place to ensure these things become a standard without seeking external interventions.