Decoding Crypto: Media’s Impact

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A controversial artwork titled Comedian, conceived by Maurizio Cattelan, made headlines in late November when it fetched over $6 million at an auction. The artwork, a banana affixed to a wall with duct tape, was acquired by Justin Sun, a well-known figure in the cryptocurrency space and a significant investor in Donald Trump’s digital asset venture, World Liberty Financial. Sun previously garnered attention when he and his company, Tron, specializing in crypto and blockchain entertainment, faced charges from the Securities and Exchange Commission (SEC) for alleged fraud and other violations. The SEC case was later paused, a move attributed to the Trump administration’s relaxed approach to prosecuting corruption. Upon receiving the artwork and its certificate of authenticity in Hong Kong, Sun held a press conference where he drew parallels between the banana and crypto, stating, “the true value lies in the underlying concept.” He then proceeded to consume the banana on stage.

Callan Quinn, a journalist in her thirties working for CoinDesk, a prominent crypto news outlet, covered the event. Reflecting on her initial reaction, she described it as recognizing the sheer absurdity of the situation. She acknowledged the prevalence of meme coins and assets with little intrinsic value. Quinn’s article documented the mixed reactions from the audience and highlighted Sun’s history of similar stunts. According to Quinn, her deputy editor, Nick Baker, approved of the piece. Despite anticipating pushback from Sun’s associates, she initially received no response. However, a few days later, Baker contacted her with an apology, informing her that the article had been removed.

Tron had lodged a complaint with Bullish, the parent company of CoinDesk, which operates a cryptocurrency exchange. Tron was also slated to sponsor an upcoming Bullish conference. Consequently, Bullish instructed CoinDesk to retract the article. The editorial team resisted, issuing letters to management emphasizing CoinDesk‘s journalistic autonomy and advocating for the article’s reinstatement. Bullish remained firm in its decision. Several weeks later, Bullish dismissed key members of the editorial team, including Baker, editor-in-chief Kevin Reynolds, and deputy editor Marc Hochstein. (CoinDesk‘s chief executive maintained that these were planned layoffs unrelated to Quinn’s article or the staff’s defense. Neither CoinDesk nor Bullish responded to requests for comments.)

For many within the crypto journalism sphere, this incident signaled a disturbing development. CoinDesk, established in 2013, had cultivated a reputation for incisive reporting, notably uncovering the story that led to FTX’s collapse, and had produced critical coverage of its former owner, Digital Currency Group. Now, it appeared vulnerable to the dictates of crypto billionaires. Quinn subsequently decided to resign from her position.

The episode resonated more broadly, particularly considering Trump’s pledges to champion a new era for crypto and his efforts to appoint crypto-friendly individuals to the SEC. Prior to Trump’s inauguration, Tron introduced the Digital Sovereignty Alliance, a non-profit organization, and sponsored an “Inaugural Crypto Ball” in Trump’s honor, during which he promoted a $Trump meme coin on Truth Social. More recently, the Trump Media and Technology Group announced plans for Truth Social to enter the financial services market, offering Bitcoin-related investments. Shortly thereafter, Trump issued executive orders establishing a federal Bitcoin reserve and suspending enforcement of the Foreign Corrupt Practices Act. Jacob Silverman, a crypto-focused journalist, recently described Tron as “a preferred vehicle for global cybercrime-related money laundering.” Pam Bondi, the attorney general, released an anti-corruption mandate echoing Trump’s stance. With influential media owners implementing changes at mainstream publications in line with Trump’s agenda, CoinDesk serves as a cautionary example of how a newsroom can be manipulated to serve specific interests.

Understanding this current climate—the deviation from established norms, the upheaval of longstanding traditions, and the prevalence of grift—requires insights from those who specialize in covering crypto. As with any field, the crypto landscape is complex. CoinDesk operates within a closed crypto media ecosystem, largely populated by advocates for the cause. Journalists new to the field, trained in conventional financial reporting, may overlook subtle nuances or overestimate the value of certain coins, which are susceptible to manipulation. However, some reporters, like Quinn, have effectively immersed themselves in the crypto world without being consumed by it, despite the desires of those who control much of crypto media. Andrew R. Chow, a technology correspondent for Time and author of Cryptomania (2024), when discussing the FTX collapse, described the beat as strikingly similar to political journalism: “There are so many individuals peddling various narratives,” he stated. “They possess charisma and present compelling stories, but often, in crypto, there’s no substance behind it. It’s often in retrospect that you can discern the heroes from the villains, making it difficult to form coherent narratives in the present.”

The inception of the modern blockchain in 2009 coincided with the Great Recession and widespread disillusionment with financial institutions. That year, the New York Times assigned a reporter to cover the beat. However, mainstream publications generally did not embrace the story until 2013, when Bitcoin reached a billion-dollar valuation. Crypto investors began inviting journalists to exclusive dinners, promoting the potential of blockchain technology. Michael Casey, then an economics reporter for the Wall Street Journal, was among the invitees. Having spent years covering financial crises in Argentina, he was intrigued by the concept of a monetary system independent of centralized institutions. “I found it incredibly fascinating,” he recalled. Casey started reporting on crypto for the Journal and authoring books on the subject.

Coverage remained intermittent, mirroring the volatile cycles of the crypto markets. Journalists approached the subject with a blend of skepticism and curiosity, documenting the rise of startups, the first instance of Bitcoin being used to purchase pizza, and opinions such as “Bitcoin Is Evil.” As crypto surged in 2017, Casey joined CoinDesk, which had established itself as a prominent source of industry news. “We blended a traditional newsroom structure and capabilities with young, tech-savvy, and resourceful reporters who could perform one crucial function: read a blockchain,” he explained.

Around the same time, other crypto-focused outlets emerged, including The Block and Decrypt, providing industry news primarily for investors. (Decrypt also offers Decrypt U, a glossary of blockchain terminology, to engage newcomers.) Many writers for these publications are stakeholders, which they disclose in their bios, in contrast to mainstream newsrooms that generally prohibit individual holdings. (The Journal permits reporters to use a shared wallet for research purposes.) Casey, an investor himself, sees no conflict of interest. “Blockchain technology benefits society,” he asserts. “It is in everyone’s best interest for the technology to develop in the fairest, most open, transparent, and well-regulated manner possible.” However, Molly White, a researcher who examines crypto fraud and its influence on political campaigns and writes a weekly crypto newsletter, argues that disclosures are insufficient to convey the true incentives driving crypto reporting. “Simply disclosing tokens provides an incomplete picture,” she says. “There are various ways to have conflicts of interest in crypto beyond token holdings,” including NFTs and Polymarket bets.

Crypto enthusiasts, however, have largely dismissed such concerns, relying on anonymous Twitter and Reddit accounts for crypto news, platforms ideal for tracking emerging memes and embodying the ethos of decentralization. However, in 2018, as the crypto news landscape expanded, the market crashed. For investors, the collapse was more severe than the dot-com bust. CoinDesk survived, partly due to its credible reporting and understanding of the beat. Nevertheless, like many crypto publications, CoinDesk relied on a small number of powerful industry sponsors. “I believe that ultimately doomed us,” Casey said.

Another market downturn in 2022, triggered in part by CoinDesk‘s investigation of FTX, compelled Digital Currency Group to sell. Bullish acquired the site the following year for approximately $75 million. At the time, Bullish CEO Tom Farley pledged that CoinDesk would maintain its journalistic independence. Casey departed to pursue his own ventures, and Quinn joined shortly thereafter. Sam Bankman-Fried, the founder of FTX, faced trial, and crypto became a focus for financial journalists worldwide. “The joke about crypto is that it’s like a century and a half of financial history condensed into sixteen years,” said David Yaffe-Bellany, who has covered crypto for the Times since 2022.

In 2023, Jacob Silverman and Ben McKenzie (best known as a former star of The OC) co-authored Easy Money, which scrutinizes the crypto market as a haven for speculation and fraud. As crypto gained broader cultural traction, reports of scams multiplied. McKenzie categorized investors as either “believers or gamblers,” tailoring his writing to the 90 percent who “haven’t been brainwashed.” This implies that serious crypto journalists may face limitations in their impact. “I don’t believe you can dissuade a gambler from gambling with facts,” McKenzie observed.

When Trump launched the $TRUMP meme coin, many reporters struggled to grasp its implications. Initial estimates of the coin’s value by news outlets varied widely, ranging from $20 billion to $70 billion. “That should have indicated to these reporters that the figures are not real,” White wrote in her newsletter. “Fully diluted valuation is such a flawed estimate that even publishing it should be considered journalistic malpractice.” Subsequently, the $MELANIA coin emerged. The value of $TRUMP plummeted. White analyzed the aftermath for the Times: 810,000 wallets were affected by the price decline, with Trump owning over 80 percent of the coins.

Following this, some crypto investors turned against Trump. Chow noted that while many within the MAGA movement have gravitated toward crypto, the reverse is not necessarily true, and many coin-holders are skeptical of Trump. “I believe numerous crypto supporters who once cheered him on have become increasingly ambivalent or disillusioned with his extractive approach,” Chow said. “The turning point was the launch of the Melania coin.”

Comprehending the nuances of this mini-saga necessitates technical and cultural understanding, as well as financial reporting expertise. Blockchain technology creates the illusion of transparency, but visibility alone does not guarantee complete accuracy. Trades are executed by pseudonymous investors, and the blockchain’s vastness and data volume make it difficult to pinpoint specific information. The market exists as a self-contained entity. Even security breaches can go undetected for weeks, as in the case of the 2022 hack of Axie Infinity, a blockchain video game, by a North Korean group known as Lazarus. “No one was paying attention,” Chow noted.

Furthermore, significant events occur “off chain,” including most of the issues associated with the FTX scandal. “Most crypto-related activities, particularly political influence and deal-making, don’t seem to happen on chain,” Quinn stated. On social media, “You must pay attention to anonymous accounts with cartoon avatars that have large followings and can disseminate influential content,” Yaffe-Bellany said. White frequently observes journalists uncritically quoting crypto-focused accounts, even when they are “taking the piss,” as she puts it. Jokes and memes constitute their own language, which crypto reporters must understand. “The humor is often dry or based on inside jokes, which are then taken literally,” she said.

In the blockchain age, traditional reporting methods remain relevant, with face-to-face interactions being the most effective. Quinn emphasized the importance of in-person reporting while working in Hong Kong. “I understand the need for anonymous sources,” she said. “But when you’re responsible for a company worth millions, people deserve to know your identity.”

It is also essential to be mindful of coverage as hype. Similar to MAGA-related rhetoric or falsehoods, providing a platform carries risks, and even critical discussion can be exploited. “I sometimes worry that covering certain aspects of crypto gives more attention to meme tokens, encouraging investment and driving up their price,” Quinn said. “There are so many influences in the information disseminated by these companies to attract investors, and it’s often nonsense.”

This situation will likely worsen as the SEC, under Trump’s leadership, dismantles its crypto investigations unit and halts legal action against exchanges like Coinbase, Binance, and Kraken, relaxing regulations. “Crypto feels empowered to build right now, without fear of prosecution,” Chow observed. Without adequate oversight, traditional finance (trad fi, in crypto terminology) is poised to suffer when the next crash occurs. A recent example occurred in Argentina, where President Javier Milei promoted a cryptocurrency called $LIBRA in a subsequently deleted X post. The coin’s value rapidly increased and then collapsed—a classic “rug pull,” where a project is abandoned after raising funds, leaving investors with worthless tokens. The event shook Argentina’s economy, and Milei is now under investigation for fraud. Many Argentinians invest in cryptocurrency, viewing it as more secure than the peso due to extreme inflation. Comparisons to the United States, given Trump’s embrace of Bitcoin, are prevalent.

That event was reported by CoinDesk, including reactions from Bitcoin executives—some of whom were unimpressed. (One crypto hedge fund founder, in the absence of a clear buying strategy, described it as “a pig in lipstick” on X.) Quinn and her former CoinDesk colleagues observed as major outlets picked up the story, echoing their coverage of other crypto news. The drama of their departure seems to have had little lasting impact. “This community has a five-second memory,” Quinn said. “There are cases of scammers who rug-pull, and then a year later they are considered rehabilitated. People forgive quickly, or simply forget.” Her editors are currently seeking new employment. She continues to cover these and related topics on her Substack, Scamurai, which focuses on crypto scams. White welcomes the addition of an independent journalist to the field. However, as she noted, “It’s not lucrative to be a crypto skeptic.”