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Many of the centralized cryptocurrency platforms that collapsed this year had one thing in common: young, outspoken and cocky leaders. Each has attained extraordinary influence, not because of their extraordinary intelligence or talent, but because of their vast sums of money and large numbers of Twitter followers. And each time, misplaced trust in their abilities has had dire consequences.
If cryptocurrencies want to avoid a similar catastrophe in the future, it’s time to realign leadership priorities. We need to ditch the cult of personality.
Before FTX collapsed, founder Sam Bankman-Fried (SBF) had a reputation as one of the industry’s most vocal figures. He was active in politics and frequently commented on what was happening on Web3.
Related: Disaster looms over digital currency groups thanks to regulators and whales
But perhaps most notably, he was actively involved in countless Twitter feuds and spectacles. SBF first came into the spotlight as the successor to SushiSwap. After Chef Nomi abruptly abandoned the project. The drama played out almost entirely on Twitter’s public stage. His antics on Twitter afterward, combined with the image of unstoppable success that FTX was broadcasting extensively, earned him over a million followers.
But even as SBF’s influence grew, he couldn’t seem to resist posting shit, regularly interacting with other Twitter users who threw stones.
In fact, SBF’s penchant for Twitter dramas played a key role in exposing FTX’s bankruptcy.It was his recent altercation with CZ that ultimately led to the FTX deposit run. His high-profile antics continued and culminated throughout the current ordeal A bizarre series of cryptic tweets.
SBF is the latest example of an industry figure whose high Twitter presence has led to public downfall, but he’s certainly not the first. He was at the center of a major collapse, but he was also a notorious troll. Do Kwon notoriously sent out a series of arrogant tweets right before Terra’s downfall, but his Su Zhu notoriously elusive comments in the 2021 bull market didn’t get old enough either. .
All the drama is happening offsite at our company this week. Discussing Who Is Cryptocurrency’s Biggest Villain:
a) Do Kwon – $58 billion loss from UST & LUNA
b) SBF – FTX Missing $10 Billion Deposits
c) Su Zhu $3.5 billion loss from borrowers
d) Alex Mashinski – $2.8 Billion Centigrade Deposit ShortageBobby Ong (@bobbyong) November 10, 2022
But leaders of failed platforms aren’t the only ones guilty of social media bragging. After all, Binance’s CZ, like SBF, was guilty of being involved in an official Twitter feud earlier this month. Digital currency group Barry Silbert, who has been at the center of alarm in connection with the FTX fallout, has also earned a reputation as a shitposter.
There are many other tweeters using online spectacle and trolling as a means of controlling conversations in the industry. Think Ben Armstrong (aka Bitboy) and Jim Cramer. They have a small army.And even if many were purged to each bear markettheir successors are increasingly becoming powers too vocal and influential in this area to be ignored.
Jim Cramer said he sold all his cryptocurrencies.
then he accused @APompliano For putting him in BlockFi.
So he lied?
Now he struggles to blame everyone who finds his bad decisions. Digital finance people is literally a myth. https://t.co/NTojFohvFQ
All Street Wolves (@scottmelker) November 18, 2022
So what is the solution? How can we better identify this personality type and use this perception to avoid future pain?
Related: 5 reasons why 2023 will be a tough year for global markets
Instead of focusing on building a cult of personality, the cryptocurrency community needs to focus on platforms and leaders who use web3 primitives to solve problems in ways never experienced before. there is. The crypto community needs to stop listening to the loudest voice in the room and start listening to those who are smart and experienced. Likewise, we also need builders with real value-creating experience so that users have more of a say.
Ultimately, the answer lies with us and the people we, as an industry, choose to focus on. We need to learn how to identify and support builders who are building transparent, secure, high-quality applications and decentralized applications no matter how many followers you have.
Corey Wilton Co-founder and CEO of Mirai Labs, the international game studio behind Pegaxy. A renowned speaker and earning thought leader, he founded the first company in the cryptocurrency industry in 2018. This is a customer support service designed to assist cryptocurrency companies with customer service.
This article is for general information purposes and is not intended, and should not be construed as legal or investment advice. The views, thoughts and opinions expressed herein are those of the author and do not necessarily reflect or represent the views or opinions of Cointelegraph.
