In his debut book, “Cryptomania: Hype, Hope, and the Fall of FTX’s Billion-Dollar Fintech Empire,” Andrew R. Chow, a tech reporter for Time, delivers an incisive and thorough examination of the dramatic 2022 cryptocurrency crash. This meticulously researched narrative dissects the intricate web of ambition, deception, and financial mismanagement that led to the downfall of one of the most influential players in the crypto world.
At the heart of this tale is Sam Bankman-Fried, the enigmatic founder of FTX. Chow’s portrayal of Bankman-Fried is unflinching, casting him as a privileged figure who, despite his lofty promises to creditors, engaged in a series of perilously risky financial maneuvers. According to Chow, it was Bankman-Fried’s “ego and arrogance” that erected a “Jenga tower of insanely risky financial instruments,” which ultimately led to the implosion of FTX.
The book goes beyond the headlines to offer a comprehensive account of Bankman-Fried’s rise and fall, culminating in his fraud conviction. Chow’s detailed recounting of the mogul’s relentless work culture, characterized by 15-hour days, provides readers with a deeper understanding of the intense environment that contributed to FTX’s downfall.
Chow’s work stands out in the crowded field of crypto investigations by not only chronicling Bankman-Fried’s misdeeds but also by juxtaposing his story with those of genuine blockchain idealists. One such figure is Owo Anietie, a 25-year-old Nigerian artist who turned to NFTs in hopes of lifting his family out of poverty and funding local initiatives. Anietie’s dreams, however, were shattered when FTX’s bankruptcy decimated the NFT market, leaving him disillusioned and cynical.
In stark contrast to Bankman-Fried, Chow presents Vitalik Buterin, the Russian-born creator of Ethereum, as a beacon of the blockchain ethos. Buterin’s commitment to decentralizing financial power is highlighted through his decision to negotiate down his share of the business in 2022, exemplifying a stark divergence from Bankman-Fried’s self-serving tactics.
Chow’s narrative is enriched by vivid portraits of both prominent and lesser-known figures entwined in the FTX saga. His ability to weave these individual stories into the larger narrative of FTX’s collapse provides a multi-faceted view of the cryptocurrency world, offering readers a nuanced understanding of the factors that led to one of the most significant financial crashes in recent history.
“Cryptomania” is not just a story of downfall and deceit; it is a reflective piece on the broader implications of cryptocurrency’s volatile nature. Through detailed reporting and engaging storytelling, Chow captures the essence of a transformative period in financial history, making this book a compelling read for anyone interested in the rise and fall of crypto empires.
