In a recent interview with best-selling American author Michael Lewis, the crypto community was thrust into a maelstrom of controversy as Lewis defended FTX and its former CEO, Sam Bankman-Fried. In a departure from the prevailing narrative, Lewis argued that FTX was not a Ponzi scheme but instead had the makings of a great business. Here, we delve into the reactions that have erupted across the crypto sphere following this shocking interview.
Twitter influencer Sean Tuffy expressed his disbelief with Michael’s statement that claimed FTX had a great real business had no one had cast aspersions on the business. According to Lewis, if there hadn’t been a run on customers’ deposits, they’d still be making tons of money. Tuffy’s expletive-laden reaction reflects the frustration many in the community feel towards Lewis’s contrarian stance.
Pro XRP lawyer John E Deaton weighed in, echoing the sentiment of many crypto enthusiasts. In response to Sean Tuffy, Deaton expressed his astonishment, claiming that anyone who cared about the space would be furious about this insane reporting. Deaton’s response highlights the broader concern that Lewis’s comments could undermine the efforts to shed light on questionable practices in the crypto industry.
I know that EVERYONE who cares about this space is right now about this insane reporting. I sat saying wtf https://t.co/QxxdGO0kvI
— John E Deaton (@JohnEDeaton1) October 2, 2023
Lewis also made controversial claims about Sam Bankman-Fried’s political involvement, suggesting that he considered offering Donald Trump $5 billion to withdraw from the presidential race. Lewis implied that when FTX collapsed, Bankman-Fried no longer had the financial capacity for such an offer.
Bitmex Research Team Questions FTX’s Business Model
The Bitmex Research team added another layer to the debate by suggesting that FTX’s business might not have been as solid as Lewis portrayed it. They argued, “Perhaps Alameda helped provide FTX user’s liquidity, liquidations, and margining capabilities. Without that, maybe FTX wasn’t a great business at all.”
But perhaps Alameda helped provide FTX user’s liquidity, liquidations and margining capabilities. Without that, maybe FTX wasn’t a great business at allPerhaps instead it’s fair to say that FTX *appeared* like a great platform for customers
— BitMEX Research (@BitMEXResearch) October 2, 2023
This perspective raises questions about the extent to which FTX’s success relied on external factors and whether it was truly self-sustaining. Messari creator and crypto expert Ryan Selkis also expressed their frustrations, terming SBF as a ‘scumbag’.
The Michael Lewis interview is infuriating. SBF was a scumbag, and now we need to hear about his “tragic fall” in the MSM because Sam told them he was an “effective altruist” and people like Michael Lewis were so far up his ass they couldn’t tell truth from fiction.
— Ryan Selkis (@twobitidiot) October 2, 2023
Michael Lewis’s assertion that “there’s still a Sam Bankman-Fried shaped hole in the world that now needs filling” continues to ignited further debates about the legacy and impact of FTX’s downfall on the crypto space. While Lewis’s perspective has drawn outrage, it also highlights the need for open and transparent discussions about the cryptocurrency industry’s future and regulatory measures. The debate rages on, with no consensus in sight.
