11 Book Notes - Cryptomania: Hype, Hope, and the Fall of FTX's Billion-Dollar Fintech Empire
Book by Andrew R. Chow
⭐️⭐️⭐️⭐️⭐️ 5 of 5 stars
What I Feel:
I thoroughly enjoyed reading this book and look forward to more works by such serious authors.
This is a truly thrilling true story that became an incredibly enjoyable read for me. Although a basic understanding of cryptocurrency helps in grasping some of the details, once I started reading, I couldn’t put the book down—it felt just like an exciting novel. The author’s tone reminded me of Michael Lewis, who wrote Flash Boys, a book I read many years ago. I also believe Lewis has written on crypto and FTX as well.
The book made me reflect on how people choose paths that reward their beliefs. For instance, it contrasts the ideas behind DAOs and decentralization with Sam’s high-risk approach in traditional finance—a path that initially brought him rewards and encouraged him to continue his reckless journey.
This is an incredibly informative book packed with details, making it the perfect choice for catching up on the major events in the crypto world during 2022. In contrast to the abundance of superficial information on platforms like Clubhouse, Twitter, and Discord, this book offers a systematic and well-researched understanding of the subject. It relies on solid resources and maintains a neutral tone while explaining “what’s going on”—opinions with which I wholeheartedly agree.
The journalistic style of the book really draws you in. Even though the crypto world is vivid and chaotic—making it challenging to construct a clear narrative—the author manages to cover many aspects by quoting multiple media sources and using precise language. This results in a smooth reading experience without the distraction of awkward phrasing.
What I Learned:
- I picked up various financial terms and insights into how people manipulate cryptocurrency markets.
- I learned about the rise and fall of NFTs, particularly as an impact of the FTX collapse. In my view, FTX was never truly decentralized; it was hidden behind lies and misinformation, misusing customer funds on its trading platform to cover losses from its own poorly exchanged, illiquid “shitcoins.”
- I discovered that crypto tokens are often driven by fame and popularity, making it rare and important for someone to study them with a calm and rational mindset.
- The book provided a refreshing update compared to the early 2020–2021 period, when most information from Twitter and local communities focused solely on the negatives of platforms like Binance. The reality, as described in this book, is much more complex. For example, the book recounts an incident on Twitter where Sam mocked Zhao(co-founder and former CEO of Finance， a Chinese-born Canadian) by insinuating that Zhao’s alleged ties to the Chinese government might prevent him from traveling to Washington, D.C. to participate in crypto regulation efforts. Although the tweet was later deleted, it effectively contrasted Sam—portraying himself as the regulation-embracing American—with Zhao, depicted as a shadowy foreigner.
Overall, the book illustrates how a high-risk taker—who consistently engaged in dishonest behavior—was initially rewarded for his actions but ultimately continued down a self-destructive path that led to his downfall.
Finally, here are two quotes from the book that truly inspired me:
Crypto, like many other religions, has canonical texts, disciples and preachers, and digital congregations. Religions can exist for thousands of years, even in the face of overwhelming evidence debunking their central claims. They just need to give their followers something to believe in.
Sam Bankman-Fried won’t play a role in crypto going forward. But there are a dozen more Sams waiting in the wings, casino chips in hand, ready to bet everything that they and others own for a shot at digital glory.
Thank you for reading!
Goodreads Link: https://www.goodreads.com/book/show/203931837-cryptomania
Read my other book notes:
05 Book Note - Capitalism & Slavery
06 Book Notes - Murder in The Crooked House
07 Book Note - Okegawa stalker murder - Testament
10 Book Note - the God of the Woods
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