Although history does not literally repeat itself between the collapse of FTX and the collapse of Enron, what unites the two scandals is the “whiff of fraud” and the involvement in suspicious accounting practices, in addition to the great role played by the American media in highlighting the charms of the two companies as strong pillars in the business world.
The banking advisor, Bahij Al-Khatib, said in an interview with “Sky News Arabia Economy” that the American media had a great role in distracting people from the reality of Enron and FTX, especially since these two companies resorted to large media references in the United States of America. For example, a specialized economic magazine By granting Enron the seventh place in its classification of the 500 largest American companies, the same magazine returns to describe FTX founder Sam Bankman Fried as the successor to billionaire Warren Buffett.
Paid ink
Al-Khatib adds that some media agencies in America can influence indicators and the movement of investment capital by expressing their positive opinion about the capabilities of a company or an individual, pointing out that this power is often used to create a misleading image through evaluations and paid advertising services, and this is what happened in The cases of Enron and FTX where their successes turned out to be “paid ink” on paper.
Al-Khatib stressed that the American media is not solely responsible for what is happening with regard to investing in cryptocurrencies, as trading platforms allocate millions of dollars for advertising on social media, and for people to hear what they want to hear, in terms of the ability of this investment to achieve large profits quickly and with small capital.
Information security and digital transformation consultant Roland Abi Negm said in an interview with “Sky News Arabia Economy” that the American media contributed to giving an unrealistic image of the FTX platform and its founder, Sam Bankman Fried, who appeared on the covers of several reliable American economic magazines, indicating that these Magazines, as well as many media outlets, paid marketing to the founder of FTX, praising him and comparing him to the world’s top businessmen without checking the truth of what this man is doing.
According to Abi Negm, digital currencies take their value from trust and from the issue of marketing, and therefore the recurring appearance of the founder of FTX in the media and the praise of the most important economic magazines helped him gain the confidence of traders and investors, so that it is now clear that everything the media said is incorrect, and it is due to the paid advertising that He used to turn to Bankman Fried to whiten his image.
The fate of people is in the hands of one person
Abi Negm pointed out that the issue of paid advertising campaigns is not only related to the FTX platform, but rather to many other trading platforms, which resort to marketing themselves through magazines, celebrities, and communication platforms, and delude people that investing in cryptocurrencies is an easy and quick investment of profits, while the facts showed that the fate of money People are linked to the decisions of one person, who can dispose of them without accountability or oversight, and this is precisely what allowed Bankman Fried to dispose of more than $ 8 billion of people’s money.
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