Insights
The High Price of Single Points of Failure in Blockchain Projects
By
Lina Triana
One decision can make or break a multimillion-dollar fintech project. When your entire go-to-market plan depends on a single provider, you’re gambling with your future. In this behind-the-scenes account of leading the Mastercard approval process for a crypto-fiat debit card, discover how the FTX collapse triggered a chain reaction of operational failures, trust loss, and costly recovery — and the strategic lessons every blockchain leader should learn before scaling.
In November 2022, as the crypto market shook with the collapse of FTX, our blockchain payment project faced its defining stress test. Overnight, a thriving community of 70,000 active users, $80,000 in weekly revenue, and a wave of 10,000 prepaid card orders began to unravel. Within months, our revenue had dropped by 95%, falling to just $4,000 per week.
This wasn’t due to lack of demand, flawed technology, or weak execution. It was the consequence of one critical mistake: relying on a single provider for a vital piece of our infrastructure.
The Setup
For over 17 months, our team worked to secure Mastercard approval for a crypto-fiat debit card—a pioneering solution aimed at bridging digital and traditional finance for underserved markets.
Active community: 70,000 users
Preorders: 10,000 cards
Cards sent to print: 5,000
Initial tech & licensing investment: $200,000+
We had built momentum, secured exchange listings, and developed the interface gadgets to activate cards for our first clients. But the entire process depended on one interface provider who held part of the necessary licenses for Mastercard validation.
The Breaking Point
When FTX collapsed in November 2022, the shockwaves didn’t just hit exchanges—it disrupted our provider’s operational stability. With their services compromised, our integration stalled.
The fallout was immediate:
Clients couldn’t receive their prepaid cards
Trust in the project eroded
New user acquisition slowed to a crawl
Over the following months, our weekly revenue sank from $80K to $4K, wiping out 95% of our customer base. The delay destroyed the initial excitement and proved fatal for recovery efforts.
The Lesson
The cost of maintaining a backup provider seemed high during development. But in hindsight, the price of not having one was far higher—measured not just in dollars, but in reputation, momentum, and market confidence.
In blockchain and FinTech, redundancy is not a luxury—it’s a survival strategy. Whether it’s licensing, technical infrastructure, or compliance partners, relying on a single point of failure can turn years of work into a cautionary tale overnight.
Takeaway for Industry Leaders
Build parallel partnerships for mission-critical services
Secure secondary licensing paths before launch
Model risk scenarios beyond technical failure, including macro market shocks
Remember: scalability isn’t just about growth—it’s about resilience
The blockchain ecosystem is still maturing, but one truth is already clear: in a volatile market, your weakest link will break at the worst possible time. The companies that anticipate this reality—and plan accordingly—are the ones that survive.