According to Bloomberg, recent scandals in the cryptocurrency industry have highlighted a recurring pattern: many of those involved are graduates of Ivy League or other elite universities. This week, Nader Al-Naji, a Princeton University alumnus, was implicated, prompting questions about whether the crypto sector is so desperate for talent that it overlooks potential red flags from elite institutions. Alternatively, it could be that these prestigious schools foster a culture that encourages excessive risk-taking and, in some cases, illegal activities. Some suggest that graduates from these institutions may believe they are too smart to fail, as noted by a Princeton graduate.
Criticism of elite universities is not new. These institutions are often perceived as disconnected from reality, with an emphasis on prestige that can lead students to overvalue their status and believe in their superiority. However, the culture within the crypto industry itself should not be absolved of responsibility. The sector has a tendency to elevate individuals with impeccable resumes, often from top schools. While technological challenges in crypto do require talent from prestigious institutions, much of the industry revolves around finance, games, art, and culture.
The attraction of elite schools to the crypto industry also signifies a significant cultural shift since Bitcoin's inception in 2008. Initially rooted in cypherpunk and libertarian ideals, the industry has increasingly become dominated by elites and Wall Street. Influential figures in the industry, even those not accused of wrongdoing, often have backgrounds that resemble those from Silicon Valley or Wall Street rather than the grassroots culture of crypto's early days. Notable examples include Galaxy Digital’s Michael Novogratz, ConsenSys’ Joseph Lubin, and Pantera Capital’s Dan Morehead, all Princeton graduates. Cameron and Tyler Winklevoss attended Harvard University, where Ripple Labs’ Brad Garlinghouse earned his master’s degree. Paradigm’s Matt Huang and MicroStrategy’s Michael Saylor went to MIT, and Arthur Hayes attended the University of Pennsylvania.
The issue may lie not in the schools themselves but in the industry's often lax approach to due diligence. Shuyao Kong, co-founder of blockchain startup MegaETH and a Harvard Business School graduate, pointed out that the broader lack of due diligence in crypto is problematic. During bull markets, founders from all backgrounds receive funding too easily, with those from top schools naturally attracting more attention, liquidity, and mindshare. When these founders fail, the impact is significant.
