1confirmation Founder Says Smart Money Repeats FTX Mistakes
Nick Tomaino, founder of 1confirmation, commented on the crisis surrounding the AI investment fund Situational Awareness, pointing out a long-standing issue in the investment community: many so-called "elites" and "smart money" lack basic risk judgment abilities. Tomaino stated that while he does not know all the details of the incident, he believes investors are driven by wealth and attention, gradually ignoring facts, risks, and the judgments of others. He cited the collapse of FTX as an example, noting that many people could sense abnormalities after brief interactions with the founder, but a significant amount of "smart money" chose to continue investing and endorsing it in pursuit of returns and market narratives. Tomaino pointed out that similar phenomena have occurred with the founders of Situational Awareness and the investment circles supporting the fund: investors of the same type chase grand narratives, provide funding, and promote publicity, ultimately leading the fund into trouble due to high-risk bets and market reversals. Industry participants need to learn from this and avoid repeating the cycle of "chasing trends - ignoring risks - collectively stepping on landmines."
-- Price
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