The FTX scandal is one of the biggest disasters that the crypto industry has faced in recent years.
Given the fall of FTX, the crypto community has been researching Sam Bankman-Fried (SBF) and his involvement in FTX’s fall. The crypto community realized that the mainstream media is trying to cover what really has been happening. Therefore, they decided to do their own research (DYOR) regarding the issue.
To give more context, FTX’s financial statement was leaked. These statements showed that the company does not have solvency and could face bankruptcy if users decide to withdraw funds. The panic spread quickly as users sold their FTT tokens, leading to a major collapse of the exchange. Consequently, FTX halted withdrawals and presumably “stole” customers’ funds. With SBF being behind the wheel, the crypto community heavily criticized him and demanded their funds back.
SBF’s Political Ties
Because SBF donated millions of dollars to political parties, including Biden’s administration, the crypto community started to question the integrity of the latter. Additionally, mainstream media tried to cover the real story by trying to portray SBF as an innocent figure rather than a criminal.
Given SBF’s political ties, the crypto community realized that mainstream media could be heavily influenced by the political party in charge. Seeing how the crypto community is not falling for the same traps, mainstream media and politicians changed the narrative and tried to blame cryptocurrencies for what has been happening.
However, what FTX and SBF did is completely different from what cryptocurrencies really entail.
Therefore, the likes of Elon Musk and Changpeng “CZ” Zhao urged the crypto community to do their own research and not rely on the mainstream media that are trying to manipulate the audience into thinking that the fall of FTX is not SBF’s fault.
Crypto Community DYOR
Google search trend shows that searches for “SBF” surged in November. The data shows that searches for SBF far exceed the searches for Do Kwon when Terra collapsed a few months ago. Even though both projects failed massively, FTX’s fall shows that the crypto community is starting to research more regarding these events and not simply rely on what others are saying.
Data shows that searches for “Sam Bankman-Fried” in November exceeded searches for Do Kwon back in May by 185.7%. Moreover, data also shows that searches for SBF exceed the likes of Su Zhu and Craig Wright. Su Zhu’s Three Arrow Capital filed for bankruptcy in July of this year, while Craig Wright last year claimed to be the creator of Bitcoin, Satoshi Nakamoto.
This increase in interest could mean two things:
- The FTX event is one of the biggest collapses to occur in the crypto market;
- The crypto community is now doing its own research on what is happening with the crypto market in real-time.
These assumptions do not have to be mutually exclusive.