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Surviving AI: How To Thrive In All Professions

Artificial intelligence (AI) discussions have taken over many of the spaces that I frequent. Everyone is wondering how they will be able to keep their jobs if AI threatens to replace them. I haven’t had the same concern, and I’ll explain why in a moment (I’ll also tell you how to be AI-proof later in this post). To be clear, AI can absolutely replace MANY different professions, and I understand that some people are afraid that they may be next to be impacted. But I’m here to tell you that most people can not only survive the AI takeover, but THRIVE, earning more money and getting all of the things they’ve ever wanted: flexibility, work/life balance, and meaningful, interesting work.

I’m not concerned about AI overtaking a huge portion of the job market because I’m old enough to have seen more than one tech revolution. With every revolution, there are jobs eliminated . . . and jobs created. I remember when I had a typewriter in my home, and how the computer replaced it. But, as many of you know, computers – like typewriters – can malfunction, and thus need repair. Guess what? When tech fails, someone has to fix it! And even if you aren’t the repairer of said technology, you can be of service in a different way (remember that whole post on selling shovels? Yeah, I was sounding the alarm WAY before most people knew about ChatGPT). Certain skills are transferable (typing on the keyboard of a typewriter prepared me for typing on a computer keyboard: they’re the same!) and other skills are a slight pivot into a different modality (if you use creativity as a graphic designer, you can use creativity in other industries [once you learn the basics of that industry]).

Much like the automobile replaced the horse and carriage (I’m not old enough to remember that, but I know it happened!), and airplanes became the default method for long-distance travel (as opposed to trains and ships), newer technology will replace slower, less efficient existing technology. What’s interesting is that, while change will happen quickly, that doesn’t mean that the newer tech will overtake ALL existing processes. Despite there being many different electronic options for sending documents from one person to another, the US Postal Service still exists. The courts still require certain documents to be “served” via postal mail or hand delivery. In spite of the glorious technology of scanners and PDF formatting, there are still companies that only accept fax documents, and these companies PAY for additional phone services that allows for sending and receiving faxes. As recently as 2022, I knew someone living in Germany (a country known for being an industrial titan) that could only get documents from one doctor to another through faxing, and he still had to hand-carry prescriptions to the pharmacist. In short, new tech does not quickly and completely replace all existing old tech: it’s a process, and it could be years or decades before the transition is “complete”. In the case of the horse and buggy, there is still a subset of people in the United States – the Amish – that keep the carriage makers in business.

Aside from the points mentioned earlier, there are reasons why being AI-proof is worthwhile. Here is a quick guide to how to survive and thrive through the AI revolution, no matter what profession you’re in:

  • Learn to specialize in the things that AI does poorly. Anyone that has enjoyed using free or low-cost AI image generators has griped about the hands of the images. A great potential niche for digital artists is to specialize in fixing the error in these photos. For copywriters, AI does a great job of quickly coming up with text that matches the prompts entered, but, unless the text is edited for a more natural voice, these will fail the AI language checkers and fall victim to being “pushed down” in the algorithm. Editors that specialize in adding human (natural) voice touches are needed. Go into the many YouTube and Discord groups discussing the shortcomings of AI, and find something that you can offer to offset them.
  • Develop soft skills. This is going to be challenging for people who have relied heavily on technical expertise. While AI can automate those technical tasks and free up considerable time, it cannot replace uniquely human skills such as critical thinking, creativity, emotional intelligence, and problem-solving. Yes, not even ChatGPT 4 has mastered critical thinking and problem solving for the REAL WORLD (though, by all accounts, it’s getting closer). Developing your soft skills can set you apart from the machines that will undoubtedly eliminate most of the technical tasks you currently execute. In addition, soft skills can open up different revenue streams for people that may be in fields that are positioned to be completely eliminated by AI.
  • Diversify and expand your skills. This relates to the last point, because diversifying your skill set is critical for anyone that wants to weather the changes that can happen in any industry at any time. Consider expanding your skills to different areas within your industry and to different industries altogether. This opens up so many more opportunities and keeps you from being devastated by the impact of automation in your current area of expertise.
  • Embrace AI and technology in general. If you can’t beat them, join them. Rather than viewing AI as a threat, learn to embrace it and find a way to use it to your advantage. Now is a perfect time for this, since many AI tools are free to use and can be explored in whatever pockets of time you have. Try using AI to help you automate repetitive tasks, then watch even more of your time open up. You can also experiment with using AI’s decision making capabilities, and it can help you plan out your work or your life, thus freeing up your mental resources to be applied to some other project or passion (or passion project, if you’re anything like me).
  • Strengthen your network, or form a brand new one. Networking is critical in practically any profession, but especially in industries that are undergoing major changes due to automation. Stay connected with colleagues (current and previous), attend industry events, and participate in online forums to stay up to date on the latest developments and opportunities. If this is something you’ve never done before, prioritize doing it now.

There are many more specific things you can do, and I’ll be sharing more about that in upcoming articles. But this introduction to the idea will hopefully get the wheels turning and inspire you all to take steps to AI-proof your life. Do you have any strategies for surviving and thriving through AI’s takeover? I’d love to hear about it in the comments below!

3 Things To Do In March For Financial Health

Welcome to March! As we get closer to the spring equinox, we can’t help but feel the freshness and the energy of “new starts”. While this may be the beginning of the next season, this is also the season for completion, specifically, the completion of major financial obligations, such as tax filing. For the month of March, here are three things you can do to ensure and promote your financial health.

  • Review your budget and see how you’re doing. If you set up a budget for the year, this is a good time to look at how you’re doing and make adjustments. I’ve found it’s best to look at the previous quarter objectively: don’t beat yourself up over financial missteps, just commit to doing better in the future, and move on. Looking at your numbers at this point is also good if you have a tax year that differs from the standard calendar (January to December). Fiscal year filers may find it useful to see what’s happening in March, as this is often their mid-year point, and as such, a good time to make big changes to ensure that they finish strong.
  • File Forms 1120S and 1065, as well as applicable Schedule Ks. This is the time to file tax returns for partnerships and S-corps (unless you’re on a different tax year schedule). Schedule Ks should also be filed at this point. If this doesn’t apply to you, then start gathering the financial documents needed to file your tax returns (especially if you file a 1040). Review those documents and make sure that the information that has been reported is correct.
  • Update your beneficiaries on insurance policies and retirement accounts. While you’re in the process of reviewing and reconciling, it may be a good idea to review all of your insurance policies and retirement accounts. Make sure that the correct beneficiaries are listed, and take time to read through the benefits available under each policy. It’s worthwhile to check these regularly, and confirm whether your comprehension is still clear and accurate.

That’s all for March. Do you have any financial moves you’re making this month? I’d love to hear all about it!

Yes, You Can Start Making Money With AI. Here’s How.

Still feeling overwhelmed when it comes to AI? That’s understandable: this world is new for everyone. But, on the upside, new worlds mean new opportunities, and there is a plethora of options that you can take advantage of at this point in time. Even with my limited knowledge, I’ve already made money with AI, less than two months into learning about these tools. As soon as I saw my first sale, I knew I needed to write this post and share this information with you all. Here’s a quick guide to start making money quickly with AI:

  • Decide what you want to create. At this early part of the AI revolution, there are many resources and countless options for anyone that’s interested in creating with AI. Future Tools has a list of all of the AI-powered platforms that offer you options for creating new or upgraded income streams. For me, it was more interesting to work with images, which is why I dove into learning how to do AI-generated art. However, it’s possible to create videos, music, website copy, and so much more using AI. If you need a simple list of AI business ideas that have already been tested, check out this Side Hustle Nation’s blog post, where Matt Wolfe (one of my favorite AI gurus) discusses the business options available using AI.
  • Watch YouTube videos to teach you the skills needed to get your business running. My favorite YouTubers that are discussing AI right now are Matt Wolfe, The AI Advantage, Goda Go, and Maximize. Learning about prompt engineering, large language models and natural language processing, and stable diffusion are great starting points, and, fortunately, you don’t have to be an expert at any of these in order to earn money with these tools. Carve out a bit of time each day to learn something about this new, exciting world, and allow these YouTube teachers to help you.
  • Start experimenting with what you learn. Work with what you know and see what gives you the best results (pro tip: get very comfortable with ChatGPT: you can use it to create a business strategy that can improve the likelihood of success). Launch and have fun!

If you’ve had a chance to start using AI tools, please let me know. I’d love to hear what you’ve learned so far!

How Rihanna Won The Super Bowl – Business Lessons From A Billionaire

I was eager to write this post, after being one of the millions that tuned in to see Rihanna’s halftime performance at Super Bowl LVII. I’m fascinated by Rihanna because her brands, Fenty Beauty and Savage X Fenty, have propelled her to billionaire status. As I watched her perform, I thought about how many music artists have tried to do the same, but haven’t gotten this level of success. As a performer, it is to their benefit to have multiple business aside from singing: in many cases, these artists understand that they have a relatively short shelf life *if* they hang their legacies upon the preferences of a fickle public. So it’s always in their best interest to expand and nurture business aspirations beyond their singing careers. As far as performers go, no one in the past couple of decades has done this as well as Rihanna has.

So what can business owners and wealth builders learn from Ms. Fenty? Here are 7 business lessons from Rihanna:

  1. Don’t be afraid to have a “starter business”. In many ways, music has become secondary to everything else Rihanna has going on. Music was what opened doors for her, and she worked hard at her craft. However, she was strategic: music was never the final destination for her empire. So, if Rih had a “starter business”, that is, a business that opens doors until you can land bigger opportunities, why not you? Start with something that you enjoy but not necessarily plan to do forever, and use it to position yourself for the things that can catapult you into the spaces and income brackets that you desire.
  2. Weave your businesses together in unique ways. Most of us weren’t expected to see an ad for Fenty Beauty in the midst of the Super Bowl halftime show. Yet, here we are. When Rih dabbed her nose with her brand’s blotting powder, it set the internet ablaze, with Fenty Beauty’s website activity tripling its normal numbers. It was a simple move that got her brand the kind of additional press that most business owners dream of. Consider how you can weave two or more of your interests together, and then experiment with those interests – explore how they overlap, observe how they diverge, and see whether these interests have a common audience – until you hit your sweet spot.
  3. Consider starting a business in an area that others have complimented you on. Rihanna is a singer, but her beauty is undeniable, and she quickly became noted for her fashion sense. She took those compliments to the bank – literally. Her beauty and fashion brands are an extension of her, and for that reason, it’s only natural that she has made billions of dollars in this industry. Wherever others have complimented you, consider making it into your business. It doesn’t always look like what you’ve been paid to do in the past, and sometimes it’s in an area that you never believed could be monetized. And don’t worry if you can’t come up with a business idea based on those compliments: consultants like myself can help you with that. Click on this link to see how I can help you find your Marvelous Metier (TM).
  4. Have a bold opener to your business, so that you stand out immediately. When Fenty Beauty was launched, Rihanna didn’t start by peddling lipsticks or eye shadow. She took on the costliest – and riskiest – product in beauty: foundation. She launched with 40(!) shades of foundation, from the lightest hues to the deepest colors, and she didn’t cut any corners. She had the beauty industry shaking, after many cosmetic companies whined about their limitations in making complexion products that flattered darker skin. Rihanna’s risk paid off: the pale and deeply colored beauties of the influencer world sang her praises and confirmed, without a doubt, that there was ZERO reason for companies to ignore darker skin. If she, a newbie to the makeup world, could create a range that respect the varying undertones, overtones and depth of all skin tones, what was their excuse? That kind of bold opening is how she established herself as a cosmetic force to be reckoned with. If she can do it, you can, too.
  5. Be willing to do the unexpected. Perform at the Super Bowl visibly pregnant? Take a music career and spin it into lucrative cosmetics and lingerie businesses? Achieve billionaire status before turning 33? Rihanna has done it all, and did it well. NO ONE could have seen any of this coming, yet here she is, successfully doing whatever she wants. Rihanna has done many unexpected things in her career, and it has paid off handsomely for her. You can take smaller (or bigger!) risks, doing unexpected things and seeing where it takes you. Who knows: you may become a billionaire, too!
  6. When all eyes are on you, be ready to shine. The Super Bowl is one of the biggest stages available to musicians, and Rihanna didn’t waste any of her time. She employed fireworks, moving stages suspended in the air, color symbolism, and a host of other eye-catching elements to make sure that we focused on her through the entire performance. Wherever you go, be ready to shine. Have your elevator pitch and hook ready, keep your business cards ready, and always have a great story to connect with anyone you meet. You never know when the spotlight will be on you. Sometimes that spotlight happens when you least expect it, but if you stay ready, you don’t have to “get ready”.
  7. Giving 100% doesn’t look the same to everyone: just make sure you’re satisfied with what you’ve created. There were a lot of viewers that were disappointed in the performance: they expected more athleticism, guest stars, flashier production, etc.,. But, the understated performance had a certain charm to it, and it’s still memorable. I believe that Rihanna gave 100% to the performance, but how she defines her “best” is different from what viewers expected. She focused more on the details that may be lost upon those that are unfamiliar with what goes into such a large production. And in those details – the symbolism in the colors and dance, the tribute to Andre Leon Talley, the order of the music performed and the fact that she announced her pregnancy without saying a word – she gave 110%. So learn what 100% looks like to YOU, then aim for that. What others expect isn’t nearly as important as fulfilling the vision you have for yourself.

Did you glean any other lessons from Rihanna? I’d love to hear about them in the comments below!

My Review of ExodUS Summit 2022: Money Matters And Creating Joyful Lifestyles

Hello friends! I meant to tell you all about ExodUS Summit when I attended in October 2022, but I had so many other things going on at that time. I’m finally back to tell you all about ExodUS Summit, what I learned, and whether I recommend that you all attend future sessions.

ExodUS Summit is a weekend-long virtual conference, where speakers discuss a variety of topics all related to a central theme. The founders of ExodUS Summit, Roshida Dowe and Stephanie Perry, both live full-time outside of the United States, and they have built lifestyles around helping other Black women to do the same. The summit theme selected each year is focused on supporting Black women in creating their dream lives by moving abroad. The theme for the 2022 summit is Move Abroad Money, and the sessions within the summit were all centered around ways to generate enough money to relocate outside of the United States.

The topics this year ranged from securing remote positions, starting businesses, investing for profit, getting work in foreign countries, and more. I watched several sessions and I was so impressed with the variety of information offered, as well as the ease of implementing the strategies discussed. Each of the speakers excelled in explaining exactly how to get started on their recommended path to getting “move abroad money”, and I left the conference feeling confident that I could implement any of the plans that I found interesting.

The importance of ExodUS Summit cannot be overstated: a recent article published on Business Insider discussed how Black women are tired of discrimination and microaggressions in the workplace, and are leaving corporate America. This is creating a talent gap within industries and is expected to hurt “innovation and profits in corporate America”. ExodUS Summit speaks to women that are not just weary of corporate shenanigans, but who are also tired of living within a system that feels oppressive and unrewarding. The summit addresses the needs of women who are disillusioned with corporate culture, and are also seeking new levels of liberation and satisfaction. There are a lot of systemic and cultural implications that have to be unpacked when discussing whether an ExodUS is worth it, which I won’t explore in depth here (you can visit the YouTube channels of Stephanie Perry or Roshida Dowe for more details on those topics). That being said, many Black women are realizing that there are more satisfying ways to earn their living, and they don’t have to tolerate casual or targeted abuse in their personal or professional lives to support themselves.

While the conference is aimed at Black women, I believe some of the principles can be applied to anyone. There are always income alternatives that can be explored, and abusive work environments are a hazard to everyone. Making a positive change doesn’t have to be a drastic one, but if your health is at risk, taking the leap is better than staying put. In many cases, a smooth transition from a draining life to a rejuvenating one can be achieved with proper planning.

If you are part of the summit’s target audience (Black women residing in America), then I highly recommend that you attend the next summit. The discussions in this space are life affirming, inspirational and full of actionable tips. I feel that my ability to envision financial freedom was enhanced by what was discussed in ExodUS Summit. I’m confident that anyone that wants to create a life that delights them can benefit from attending the summit and taking action on what is taught.

Can ChatGPT Help You With Your Money? Of Course It Can!

I was hesitant to write this post, because I suspect that most of us have been inundated with information about artificial intelligence (AI). When it comes to new technology, I think most people feel a combination of excitement and overwhelm. With all of the conversation surrounding the capabilities of AI, particularly, ChatGPT, it’s easy to get lost in the sauce and feel like it’s all too much, too fast. The potential to create new income streams is now more accessible than ever, but everyone is (likely) asking the same question:

HOW?

Overwhelm makes it hard to see how this technology can benefit us. But here’s a simple guide (not written by AI, funny enough) on using ChatGPT to help you with your finances.

  • Ask financial questions and get pointed, easy-to-understand answers.
  • Find the “gaps” in your financial plans
  • Develop plans for income generation
  • Have the technology create documents, templates or questionnaires that can simplify your financial organization
  • Create schedules, systems and strategies for money management

There are many other uses for ChatGPT beyond the few mentioned here, but these are good starting points for exploring the capabilities within the platform. The sooner you familiarize yourself with what AI can do, the more skilled you’ll be when it is more widely incorporated into our daily lives. And if you think that you won’t have to be bothered with AI infiltrating your world, or that the integration of AI into our daily lives is far off, here’s a video from 1995, at the beginning of the Internet era. Just because something starts off unclear, doesn’t mean that it won’t one day be our norm.

That’s all for today: look out for more ChatGPT content in future posts. Take care!

The Best Way To Meet Your New Millionaire (or Billionaire!) Bestie

I’m guessing that you’re reading this because you’d like to have friends that are wealthy. Having a monied circle of friends makes sense if you have done well for yourself (financially speaking) or you simply want to associate with people that have resources and networks that can benefit you, OR that you can serve in some capacity. I’ll never advocate for seeking wealthy friends strictly for the purpose of using these individuals without reciprocity (you probably won’t succeed if you try: people that are well-resourced are usually astute enough to see when they are interacting with users and opportunists). Reciprocity is key when it comes to having relationships with anyone, but especially the wealthy.

Of course, the best way to have wealthy friends is to be wealthy yourself. (If you want help getting to that point, never fear: I’m currently testing out some new strategies and tools behind the scenes, and if they are as lucrative as I expect they will be, then I’ll be able to offer that money-making blueprint and help you majorly uplevel your income.) But, if you aren’t yet affluent, you may be wondering how to be among your future peers.

Well, according to research done by Altrata (formerly known as Wealth-X), the most reliable way to be in contact with millionaires and billionaires is to serve on a board, either as a CEO (possible, but likely difficult) or as a trustee for a nonprofit organization (much more accessible than most people realize). In the Billionaire Census 2022, Altrata does a deep dive into the data, and analyzes the location, industries and habits of the ultra wealthy. According to Altrata, the average CEO or trustee is in direct contact with at least 3 billionaires, and multiple millionaires.

Many people hear the terms, “board member”, “trustee”, “endowment” and “by-laws” and immediately feel intimidated or overwhelmed at what is involved with nonprofit leadership. But like anything else, nothing is impossible with a little knowledge. You can be a trustee of a nonprofit organization without being a multimillionaire: I’m not yet a multimillionaire, but I’ve been on the board of a nonprofit for nearly a year. And I’m here to vouch for the benefits of being part of a nonprofit organization that you enjoy serving. Here are some tips for joining the board of a nonprofit organization:

  • Research: Learn about the organization’s mission, activities, and governance structure to determine if you’re a good fit.
  • Express Interest: Contact the organization and express your interest in becoming a trustee. You may be asked to provide a resume and a statement of your qualifications and interest.
  • If the organization is interested in your candidacy, you may be nominated for the trustee position. The final decision on trustee appointments is typically made by the existing board of trustees.
  • Upon appointment, you’ll receive orientation and training on your responsibilities as a trustee and the organization’s policies and procedures. As a trustee, you’ll be expected to attend board meetings, participate in decision-making, and contribute to the organization’s governance and strategic planning.

The reality is, you may need to start at a smaller organization before progressing to board memberships of larger nonprofits. But there are no “small” starts: learning to serve on a board is an invaluable experience, regardless of the size of the organization. And, for the record, many wealthy individuals enjoy working with smaller organizations that have slimmer budgets but lots of passionate volunteers and committed leadership. So start serving, and see how many rich friends you’ll get!

That’s it for today: I’ll talk to you all soon!

3 Things To Do In February For Financial Health

Hello February!

On my end, it’s been a rather . . . intense start to this new year. I’m looking forward to calmer days in the weeks to come. That being said, I want to encourage you all to continue taking steps to improve or protect your financial health, even when life is hectic. This month, I wanted to focus on a few things that can be done quickly and that don’t take a lot of time. Taking care of your finances doesn’t require a ton of time-consuming projects.

Here are three things you can do to stay on top of your finances in February:

  • Pull your free annual credit reports. Annual credit reports are a right. This website will allow you to get free copies of your credit reports from the three reporting bureaus (Equifax, Experian, and TransUnion) for free. Just because you pull the reports doesn’t mean that you have to analyze them today: put them aside until you have the time to review them. If it helps, schedule the time needed to review them, so this task doesn’t fall through the cracks. Also, Equifax is currently allowing up to SIX free reports per year for anyone within the United States (these extra annual reports will be available until 2026). So after you make corrections to your report, you can allow a month or two, then pull the Equifax report to see if the changes are displaying.
  • File Form 1096 for information returns. If you or your business made payments that should be reported on 1099s, 1098s, W-2s, and a number of other information returns, then you have to file this form. Depending on the number of forms that need to be filed, this may not necessarily be a quick task. But it’s the beginning of the month: if you do paper mailed information returns, it’s still early enough to order this form from IRS (you can’t use the online version for submission). Form 1096 is the cover sheet for hard-copy information returns: you simply have to count how many of each information return you’re sending into IRS, then jot it down on the form. If you don’t have to file information returns, then of course you can skip this tip.
  • Move your savings to an account with a better interest rate. Bankrate has a listing of the current rates of both physical and digital banks offering high yield savings accounts. Do your research then move your coins.

That’s it for February: short and sweet, because your time is precious. Talk to you all soon!

What You Don’t Know About Industries That Attract The Ultra Wealthy

One way to acclimate ourselves to wealth is to become familiar with the patterns and traits of the wealthy. I enjoy reading research from a variety of sources, but one of my favorites is Wealth-X. This organization publishes several reports throughout the year, with information about the wealthy, including where they live, how they spend their time, and how to best connect with them if you would like to make them your clients and customers.

Recently, Wealth-X published their 2022 World Ultra Wealth Report, which gives a high level profile of the wealthiest individuals in the world. One of the fascinating parts of this report is the section on wealthy women. This is where I learned a less-known – but crucial – fact about the industries that attract the ultra wealthy.

On the whole, we tend to think of the wealthy in a very generic way. However, gender and source of wealth are highly influential when it comes to the industries that most attract the wealthy. According to the report, 55% of ultra wealthy women inherited some, if not all, of their wealth. On the other hand, 25% of ultra wealthy men inherited some or all of their wealth (75% are self-made multimillionaires). This exposes another trend: proportionally, individuals that earn some or all of their ultra wealth tend to be less interested in industries that don’t generate more profit for them. In the report, the top five industries that attract ultra wealthy men are: banking and finance, business and consumer services, real estate, manufacturing, and technology. Meanwhile, the top five industries that attract ultra wealthy women are: non-profit and social organizations, banking and finance, business and consumer services, real estate, and hospitality and entertainment.

This report shows that painting the wealthy with a broad brush will likely result in reaching inaccurate conclusions, or putting your focus on the wrong sectors. If your ideal client is a wealthy woman , it’s worth noting that more than half of them are heiresses, and thus won’t relate to the struggles of building their entire wealth from the ground up. So, if your product or service is designed to appeal to the bootstrapper, less than half of your female targets will resonate with this message. Likewise, if your target customer is a wealthy man, focusing solely on trust fund kids will reduce your target market by 75%! Most of your ultra-wealthy male clients are focused on generating more money, as opposed to finding ways to create social change through their spending. How the wealthy got their money reveals pertinent clues about where they spend their time and energy, and with this information, you can craft products, services, and marketing that are irresistible to your clients and customers.

That was just one of my takeaways from the 2022 World Ultra Wealth Report. If you enjoy analyses like these, let me know, and I’ll be sure to share more of them in the future! Also, if you want a breakthrough from your current financial situation, and a smooth transition into a new income bracket, contact me for a skills audit and values assessment. With these two reports, I show you the intersection between what you do well, what you enjoy, and what matters most to you. The sweet spot between these things is where money magic happens. Click here to learn more about these reports.

It’s Time To Talk About Sam (Bankman-Fried) and The Crypto Industry

I haven’t discussed cryptocurrency on this blog before, because, while it’s an important topic, it’s something that I couldn’t wholeheartedly endorse. My caution against promoting crypto as an investment vehicle wasn’t misguided: I’d seen enough money scandals to know that banging the drum for anything financial is always done carefully.

Then FTX and Alameda Research collapsed. And at that point, I knew that more discussions around the risks of crypto were worth having.

If you’re unfamiliar with FTX and Alameda and the founder/CEO of both companies, Sam Bankman-Fried, don’t worry. I’ll give you the abbreviated version of what’s happening. FTX was a billion-dollar cryptocurrency trading company that went bankrupt in November 2022. Alameda Research has been accused of market manipulation, profiting from the GameStop stock trading frenzy, and contributing to the volatility and lack of regulation in the cryptocurrency market. Bankman-Fried is charged with eight counts of fraud and will go to trial in October 2023.

The investigations into Alameda started in early 2021, when the Commodity Futures Trading Commission (CFTC) probed into whether the company was involved in manipulative trading practices on the derivatives market. Specifically, the CFTC is investigating whether the firm used wash trading, a form of market manipulation where an individual or group trades with themselves to create the illusion of market activity, to artificially inflate the value of certain cryptocurrencies.

FTX’s affairs are so bad that the company’s current CEO, John J. Ray III, commented what he observed as regards the state of internal accountability. He stated that he, “had never seen ‘such an utter failure of corporate controls at every level of an organization.’ ” This is coming from a man that was the CEO of Enron after it collapsed in the early 2000s.

Currently, $700 million in assets have been seized from Bankman-Fried, and I anticipate there will be more revelations in the months to come. That being said, I think it’s time to finally talk about crypto and Sam (though, this could be applied broadly to many other founders and CEOs within the crypto world).

The cryptocurrency market is still a relatively new and developing industry, and there is a lack of oversight and protection for investors. Lack of oversight and protection means that there is no recourse when things take unexpected turns: if there is an unlawful loss, there is no one coming to help you. Unless you truly have money to “lose” (and some people do!), crypto is not a sound investment. Between the high volatility, lack of regulation, uncertain long-term value, and lack of real-world utility it is, at best, a high-risk investment. If you’re interested in investing, you may want to consider alternative investments that have a lower risk and greater potential for returns. It’s always important to do your own research and invest only what you can afford to lose. This market is vulnerable to manipulation and fraud, making it far too unsafe for primary investment purposes.

Now, on to Sam: Bankman-Fried is a lesson in the cult of personality. While he is undoubtedly intelligent and capable of growing a billion (!) dollar business, he benefited heavily from cultivating an image of easygoing tech genius. Vox described it this way:

” The media portrayed him as an unassuming, nerdy savant, frequently noting his down-to-earthness, his messy mop of hair, his penchant for wearing T-shirts and shorts, his Toyota Corolla. Investors were enamored of the fact that he wasn’t a buttoned-up entrepreneur; he played computer games during pitch meetings, and like other modern-day founders, his eccentricities were taken as proof of his distinct genius.”

Part of his appeal was that he didn’t appear arrogant, stuffy, or flashy: he was ordinary but had certain quirks that read as “genius”. It’s important to remember that the cult of personality isn’t limited to “shiny” personalities: anyone that charms on a public platform can fall into this broad group. In the end, the unassuming nature was part of a public image that hid poor internal processes and (alleged) fraudulent behavior. It’s a cautionary tale on not believing what we see or hear, and to do our own research and listen to our guts.

I’ve been fascinated with the FTX, Alameda, and Sam Bankman-Fried drama, and I’ve found this case to be full of lessons for everyone. Have you all been following this case? What are your thoughts? I’d love to hear about it in the comments below.