In his new book, “Going Infinite: The Rise and Fall of a New Tycoon,” Michael Lewis tells the story of the collapse of the FTX cryptocurrency exchange and its founder, Sam Bankman-Fried. However, according to an article in the Los Angeles Times, Lewis fails to exercise the necessary skepticism when presenting Bankman-Fried’s version of events.
The article argues that the main hazard in telling a big story through the eyes of its main participant is the reliance on their version as the honest truth. In this case, Lewis falls into that trap, presenting a defense brief for Bankman-Fried rather than critically examining his actions and the collapse of FTX.
Fortunately, readers looking for a more convincing and entertaining account of the cryptocurrency scam and Bankman-Fried’s rise and fall can turn to Zeke Faux’s book, “Number Go Up: Inside Crypto’s Wild Rise and Staggering Fall.” Faux, a financial investigative reporter for Bloomberg, demonstrates his incisive grasp of the story and offers a more skeptical and critical perspective.
Faux’s book highlights the fact that Bankman-Fried’s fortune, which he boasted about to Lewis, was built on quicksand. The values of the cryptocurrency tokens that underpinned FTX were set by Bankman-Fried himself or by other promoters, based on no rational yardsticks. The book also exposes the seductive power of Bankman-Fried’s elaborate lies, which influenced venture investors, politicians, and even sports and entertainment stars.
The article criticizes Lewis for his credulous approach to the story, quoting a venture capitalist who claimed that Bankman-Fried could become the world’s first trillionaire. This claim, however, appeared in a slavish profile written by a freelance author for a firm that had invested in FTX and has since been scrubbed from their website.
The collapse of FTX and the cryptocurrency scams that have impacted millions of innocent people are described by Faux as the greatest financial mania the world has ever seen. Faux had a critical eye from the start, finding the crypto world to be populated by hucksters, opportunists, and outright scammers. He exposes the lack of value in cryptocurrencies and the artificial nature of their prices, pointing out that they are essentially worthless.
While Lewis fails to provide readers with this necessary insight, Faux’s book offers a more comprehensive and critical examination of the crypto world and its scams. By visiting the epicenters of the crypto scam and conducting interviews with promoters, gamblers, and victims, Faux provides a deeper understanding of the dangers and pitfalls of the cryptocurrency industry.
In conclusion, the article suggests that journalism schools should use Faux’s book as a textbook on the imperative need to approach a subject with skepticism. It highlights the hazards of relying solely on a participant’s version of events and emphasizes the importance of critical analysis in telling a big story.
