Crypto Twitter, Mainstream Media, and Who Really Exposed FTX

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The Washington Posts Taylor Lorenz weighed in on the crypto scene this week with a thought-provoking piece titled Influencers Outperform Mainstream Media in FTX Coverage. The article argues that gossip and freewheeling tea reporting, which has been a part of pop culture journalism for years, is finally permeating the world of business journalism and shaping crypto coverage.

Lorenz, who has made a name for herself posting stories about teenage trends and has a penchant for inserting herself into the controversy of the day, is not versed in crypto but makes some astute observations. She notes that Twitter accounts like Autism Capital have been influential in reports of FTX fraud, and bloggers like Molly White and Coffeezilla have been the first to report false crypto promises. (Fortune has featured similar figures like FatManTerra.) Likewise, she rightly points out that prominent social media accounts covering the crypto scene, including Autism Capital, have repeatedly flagged false information and then simply deleted.

Based on all of this and his observation that the crypto world distrusts authority on all sides, Lorenz concludes that these new forms of journalism have eclipsed heavy mainstream media covering FTX and more. It’s a bold claim, but is it true? Not really.

For starters, Lorenz’s article contains some great blunts, such as introducing crypto influencer BitBoy as one of the personalities that outshines mainstream media, but failing to point out that he’s a notorious pumping peddler and emptying. Meanwhile, his suggestion that accounts like Autism Capital and bloggers are a new phenomenon is misplaced. Twitter personalities like Bitfinexed have been around for years and have long played prominent roles in crypto journalism, while pseudonymous sites like ZeroHedge have been part of business media for a decade.

At the same time, Lorenz conveniently overlooks how mainstream outlets were instrumental in taking down FTX. This includes CoinDesk, which is not a traditional media site but functions as such, and is run by a Wall Street Journal veteran and was essentially the publication that exposed Alameda’s toxic track record that brought FTX down. . Meanwhile, the Journal and Bloomberg News, including featured columnist Matt Levine, are as mainstream as they come and have played a key role in exposing Sam Bankman-Fried’s many quibbles.

The thing is, unlike Lorenz, influencers haven’t eclipsed more conventional outlets and, more broadly, it’s not a zero-sum game. Of course, new breeds of journalists on new platforms are disrupting legacy publications, but it’s always been that way. Meanwhile, famous media names still provide critical coverage that not only informs most of the public, but also the influencers themselves. The more media, the better.

Jeff John [email protected]@jeffjohnroberts

DECENTRALIZED NEWS

Crypto trading giant Genesis, which is reeling from losses related to 3AC and FTX, has laid off 30% of its staff and is set to file for Chapter 11 bankruptcy. (WSJ)

3AC’s liquidators have taken to Twitter to serve a subpoena on the funds’ disgraced founder, who is suspected of hiding in the United Arab Emirates, where he is trying to rehabilitate his social media image. (Decrypt)

The New York Attorney General has filed a civil lawsuit against the CEO of bankrupt crypto lender Celsius, claiming he defrauded investors. (Reuters)

The US government is closing in on FTX Lt. Nishad Singh, who wrote a code exempting the company’s trades from liquidation and who took out a $543 million personal loan from the company. (Bloomberg)

Bitcoin and Ethereum remain in a period of extremely low volatility. (CoinDesk)

EVEN OF THE MOMENT

Crypto Wheel of Disgrace:

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