> Opinion: 💵 The FTX Debacle 💻 Happened Because The Majority Of People Just Could Not Admit That They Don't Get Crypto Either

The Emperors New Clothes 2022 version

You want critical political analysis? You want cutting-edge journalism? 

Why did you come here then? Let me be the first one to say: I do not exactly understand how Crypto works. I know it is a digital currency that can be traded online. And I know that the cryptocurrency Bitcoin for example, is being created by mining which takes an extensive amount of energy/electricity (hello sustainability and saving the planet?) If you are looking for a definition online, you will find this: 'Bitcoin mining is the process of creating new bitcoins by solving extremely complicated math problems that verify transactions in the currency. When a bitcoin is successfully mined, the miner receives a predetermined amount of bitcoin.'

Suggested business model of FTX/Alameda research via this video

The only conclusion that one can draw from the FTX debacle caused by its CEO Sam Bankman-Fried is, that the majority of people do not get the concept of crypto either, yet they pretend to do so, to be part of the big herd that is also pretending to get it, when in reality they don't. They just assumed it is a get rich quick concept that actually works. In this case here, we are talking about the FTT token created out of nothing by SBF. Even the biggest names in sports and finance jumped on the bandwagon by promoting FTX and convinced thousands of regular people who actually worked hard for their money, to invest in something that has been around in one form or another since centuries: A pyramid scheme, allegedly.

We think that there is a certain level of responsibility that comes with endorsing a product or service regardless of being famous or not. You should only get involved once you have double checked what the company you promote actually does and if they are legit. It is something you owe to your fans and friends at least if your reputation matters to you. Maybe a big pay check can sway ones clear thinking so you promote all kinds of crap? Yes, fans also have the responsibility to not blindly follow (financial) advice even if it comes from their favourite idol, but it is understandable that they put some trust in the promoted company because why else would their favourite artist / hero promote it? Now that the cards are on the table all involved have to be held accountable just so that hopefully, some of the funds can be recovered. 

Conclusion: Don't sign up with your hard earned money for something you do not completely understand.