The Rise and Fall of FTX: An SEO-Optimized, Creative, and Unique Perspective
When it comes to telling a big story through the eyes of its main participant, the main hazard lies in relying solely on their version of events as the ultimate truth. Journalism schools should take note of Michael Lewis’ new book, “Going Infinite: The Rise and Fall of a New Tycoon,” which delves into the collapse of the FTX cryptocurrency exchange and its boss, Sam Bankman-Fried. Lewis’ approach serves as a cautionary tale about the importance of skepticism in tackling such subjects. However, for a more convincing and entertaining account of the cryptocurrency scam and Bankman-Fried’s downfall, readers should turn to Zeke Faux’s book, “Number Go Up: Inside Crypto’s Wild Rise and Staggering Fall,” which provides an incisive grasp of the story.
In Lewis’ book, he opens with an anecdote about a hike he took with Bankman-Fried, listening to his subject boast about the fortunes he was making in crypto. However, the reality is that Bankman-Fried’s wealth was built on a shaky foundation. The values of the cryptocurrency tokens he controlled were set by himself or their other promoters, based on irrational metrics. The venture investors who poured money into FTX were swayed by Bankman-Fried’s nonsensical claims, while politicians accepted his donations under the false pretense of a responsible crypto exchange. Even sports and entertainment stars were ensnared in Bankman-Fried’s web, attracted by the allure of being part of something new.
Although people knowledgeable about finance, like Bloomberg’s Matt Levine, saw through Bankman-Fried’s deceit, Lewis seemed blinded by the charm. In fact, Lewis credulously quotes a venture capitalist predicting Bankman-Fried’s potential to become the world’s first trillionaire. Yet, this wild conjecture came from a profile written by a freelance author for Sequoia Capital, an investor in FTX. The profile has since been removed from the firm’s website, presumably out of embarrassment.
As FTX came crashing down, investors lost their money, politicians faced scrutiny, and Bankman-Fried’s star-studded connections distanced themselves. However, it’s essential to remember that countless innocent people, especially small investors, lost their life savings in cryptocurrency scams, leaving behind heartbreaking stories of devastation.
In contrast to Lewis, Zeke Faux’s book offers the advantage of understanding the crypto world from its earliest stages. Faux confesses that he initially found crypto to be foolish, but it turned out to be even more absurd than he could have imagined. He takes readers on a journey through the epicenters of the crypto scam, including Miami, the Bahamas, and the Philippines, while conducting interviews with promoters, gamblers, and victims. Faux reveals the dark side of the crypto world, from human trafficking to online gaming scams that left entire communities destitute.
From the beginning of his investigation, Faux recognized the red flags surrounding cryptocurrencies. Even though bitcoin and the entire crypto craze had been around for 15 years, few understood their true purpose and value. Faux discovered that the crypto world attracted the same kind of swindlers and scammers found in any boomtime scheme.
In Lewis’ book, he makes a cameo appearance as an interviewer for Bankman-Fried at an FTX-sponsored conference in the Bahamas. Faux criticizes Lewis for his fawning questions, which seemed inappropriate for a journalist. Although Lewis denied being paid for his appearance, he expressed the belief that US regulators were hostile to crypto due to brainwashing or bribery by Wall Street. This sentiment echoes throughout Lewis’ book, leaving readers with the impression that there is value in Bankman-Fried’s FTX, despite its ultimate downfall.
Unlike Lewis, Faux exposes the truth about cryptocurrencies. He highlights their lack of practicality as currencies and intrinsic value, emphasizing that their prices depend solely on convincing someone else to pay for them. Any supposed interest yields are either imaginary or part of Ponzi schemes. While Lewis fails to provide this necessary insight to readers, Faux keeps reminding us of the vacuum at the heart of bitcoin.
While Lewis’ “Going Infinite” serves as a cautionary tale about the dangers of blindly believing in a charismatic figure like Bankman-Fried, Faux’s “Number Go Up” offers a more comprehensive and critical exploration of the crypto phenomenon. By showcasing the dark underbelly of the crypto world and debunking its claims of value, Faux provides a much-needed reality check. This is a story of the greatest financial mania the world has ever seen.
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