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Eyes Wide Shut: Mapping the Crypto Media Ecosystem

by apriori (human)

The problem with the modern media ecosystem is that it presents a reality that does not actually exist. For projects to survive they must play the game. But playing the game impairs the projects’ judgement and ability to make quality decisions.

Media ecosystem here consists of a handful of pillars:

CT

Crypto twitter is the virtual place where crypto interested, industry professionals, hobbyists, larps, traders, builders, commentators, and the unsuspecting but curious show up to comment on, shitpost, share media, or release news that is relevant or specific to the ecosystem at large.

Engaging on crypto twitter is like walking through a field of landmines with impaired vision and a migraine. It is not for the faint of heart.

Many of the posts are not actually trying to say something explicitly. Instead almost all of the content is parroting views from other prominent accounts, attempts at virality, or official announcements (though no announcement is really official). Notably, the purpose of these forms of content is to signal something.

For example you could be trying to signal that you are in the in crowd of cool kids by having a particular point of view. You could be trying to signal allegiance to your favorite team’s army of mooks. You could be trying to signal intelligence with a shitpost. You could be trying to signal virtue in order to signal something more about yourself and abilities. You could simply be trying to signal that you can ship code or write technical blogposts. The signaling is the key. Once you understand this you’ll realize how silly your participation in the daily ritual of posting, replying, and scrolling really is.

You see much of what is discussed on crypto twitter is not in fact reality. It is a hyperreality.

Hyperreality is seen as a condition in which, because of the compression of perceptions of reality in culture and media, what is generally regarded as real and what is understood as fiction are seamlessly blended together in experiences so that there is no longer any clear distinction between where one ends and the other begins

For example imagine a team that raised a bunch of money from prominent investors makes an announcement that their product is now a thing it exists. They make lots of noise including x articles, vlogs, podcast appearances, and even host a special keynote irl event to commemorate the thing.

Everyone reacts. There is a group of people who support the company and the new thing because they have existing relationships they want to maintain and as such want to signal allegiance. So they quote tweet or comment with something like “genuinely feels historic, a gigantic leap forward in blockchain technology.” Perhaps you get something that glazes slightly less than the tone of an investor but signals allegiance, “Incredible to see the team moving the space forward”. On the other side you get comments like “We don’t need another thing like my favorite chain” or “just another vc scam coin going to zero”.

Then in the replies you get a mix of supporters and haters with astute bots farming engagement as reply guys (like why???). The announcement day passes and if there was enough tension created then the discussion bleeds into the next few days, if not people remember the impression it made on them, forget the details, and then move on.

As it turns out though the thing is actually just an idea. It’s a research paper, a prototype implementation, and a marketing narrative with some Go-to-market BD partnerships (which are just handshake agreements for cross-marketing but lack specific details about technical integrations and product requirements). Now we know the team is a high calibre team because they have shipped another thing before that many people use and like so we know the new thing will come, it’s only a matter of time.

What happens next really doesn’t matter. If the team fails to ship the thing people don’t even remember what the thing was. If the team does try to ship thing, people only care insofar as there is a token offering some sort of financial gain. but they don’t actually care about the thing. The reason this is the case is because participants of crypto twitter cannot clearly discern reality from hyperreality. If the media ecosystem is the hyperreality CT dwellers are incentivized to participate in and not question the validity of, then they will participate in the hyperreality because it seems and feels real.

This is similar to any system where reality diverts from hyperreality. You see this often in corporate settings where there are policies and procedures along with KPIs which must be satisfied. Everyone who works at the company knows that certain KPIs can’t actually be satisfied without gaming them which is in fact counterproductive to good work being accomplished. However, because the KPI is part of the fabric of the hyperreality people kind of believe them or cynically just follow along. There is no incentive for calling out the gap. It will lead to punishment in the form of reprimands, career stagnation, or even outright termination.

If you call out the hypocrisy or point out that people are merely playing signaling games to get something then you find yourself on the outside of opportunities looking in. If you play the game and go along with the narratives, hype, shit posts, and lose yourself inside the hyperreality you may find some loose change on the ground - a reward for your efforts. The problem is success here requires maintaining the hypocrisy, not acknowledging that the gap between hyperreality and reality is real.

The moment you take the conversation off twitter to signal or better yet in person, you get more details and often you find that most of the people are playing this game cynically, not naively. Though there is a place for naivety, it is the one of a new hero who does not yet know the territory he is about to traverse. These new heroes are useful in pushing forward new initiatives and lack the cynicism or jadedness of grizzled veterans. They are critical in keeping the game going, without the naive fresh blood, the players’ cynical behavior will collapse on itself. The naive heroes take the hyperreality at face value.

If you have ever seen the movie Wall St., there is a scene where Gordon Gecko played by Michael Douglas is walking in the city with Darien Tayler played by Daryl Hannah. In the scene Darien says she is falling fast for the young protagonist Bud Fox. Gecko reminds her not to fall in love too fast as Bud Fox has not “been around the block yet, but you have”. Gecko then claims that love is made up and Darien acknowledges his sick sense of humor. The young hero is Bud Fox who believes he is making an impact changing the world not knowing how the sausage is made.

Conference Circuit

The conference circuit is where hyperreality meets the physical world. It is very convincing. Teams spend hundreds of thousands of dollars on sponsorships, trade show style booths, main stage speaking slots/panels and podcasts appearances.

The illusion that is being created is that the entire production is based on merit. Only the most qualified participants get speaking slots, only the best teams get sponsorships, and certainly only the most credible teams get booths in the main-conference venue.

But reality is far from this. In fact these touch points are set up to convince onlookers that particular projects and their leaders are highly credible mini-celebrities who you should pay attention to and treat like royalty.

Many conference sponsorships are explicitly pay for play. What this means is that the organizers charge potential speakers a lump sum of money to speak at the conference. In exchange they will get “main-stage” or “key panels” and even a podcast for an extra $25,000. Sometimes there are packages available. It really depends on the type of conference and quality. But as a naive observer you may think wow what a well put together set of speakers clearly this conference is amplifying signal. In fact it’s simply making the same KOL posts, the same faux announcements, and the same corposlop marketing jargon legible in the physical world. The majority of observers are not aware of the pay for play nature, only the cynics.

Conferences also offer robust networking areas with free food options. This gives the illusion that there are so many people doing business when in reality it’s more like people looking for a free meal and to dapp up the 1-3 people they recognize before hopping to the next event.

But like most pilgrimages the conference circuit is a unique one. And over time you may bond with some members who keep showing up just like you. To the naive this gives the appearance that the hyperreality you see on CT is real and is playing out irl as you meet with the avatars you know so well for the first time. But this also leads to performative behavior including amplifying slop talking points, mistruths, and noisy information. It’s not until you have been around the block do you understand what is actually happening.

You also see the performative signaling in real life, with who attends what side events, how some people are treated like gods, and the lengths people go to make themselves seem important. To the naive hero again, this simply reinforces what they see on CT.

Not all is for naught though. Many high quality high integrity individuals spend time and effort preparing cutting edge research or prototype presentations that can help inspire the community of builders investors and researchers attending. However, these talks can also be viewed on youtube outside of the manufactured aesthetic reduced only to the content of the presentation - a cleaner analytical lens to filter signal through.

If crypto twitter is the blue pill then conference circuit is Zion.

Podcast Industrial Complex

Crypto podcasts used to be less common. Today they are ubiquitous. The infra and software stacks are commoditized to the point where if you spend $1000 you can get a solid setup. Add some good editing software and your product can be top notch. The cost of entry is cheaper than paying multiple contractors to figure out how to get on the “good podcasts”.

When crypto podcasts were less common they tended to act as a sort of filter for signal. There were certain podcasts that you could look to consistently for good earnest discussions. Eventually though there was more competition and the need to fill slots started to dilute the signal filter, in fact in some cases it was mostly noise.

Another thing that is important to consider more closely, stated above, is the idea which you have also seen in music, sports, and entertainment of practitioners operating podcasts directly. Insiders speaking to insiders so to speak. The conversations can be more casual and open but also more direct and truth seeking. This has led to many crypto startups and vcs produce their own media strategies to market themselves without having to seek out media partners. This strategy can also advertise to other podcasters that you can do podcasts and potentially can be featured on other podcasters podcast as a practitioner or a podcaster.

It would be dishonest not to point out what happens when startups and vcs in particular began to become the media layer. vc podcasts can push narratives that either direct attention to them, pump their bags in the short/medium/long term, use as a tool for general visibility which could possibly enhance deal flow across rounds. Going back to wall st. for a moment there is a good scene where Gecko schools Fox on the “rules of the game” with lines like “we make the news pal” and “you’re not naive enough to think we are living in a democracy”.

Note that a16z called this out as far back as 2012 and began building out their own media arm which serves as a narrative distribution platform. It’s a smart strategy, it makes you look smart, allows you to demonstrate expertise, and sell basic ideas in fancy intellectual wrappers. Legitimacy is a scarce resource, but one necessary for trust. But once people trust you, you can indeed get away with a lot more than you would have otherwise in terms of narrative control.

The vcs though i think try hard, they might not all be aware of the system they’re playing into. Not everyone is thinking at a meta level.

The Podcast industry has other problems though. Some podcasts are pay for play. There could be cash that changes hands or investment opportunities. These relationships can be mutually beneficial for some people but rarely are they transparent. This is in general an ongoing issue for the crypto industry, but for podcasts there are often conflicts of interest that go undisclosed.

For example let’s say that on launch day of project z representatives of their company go on prominent podcasts to shill their new product. let’s say the podcast hosts have been given an angel investment ticket at employee level pricing. The podcast hosts are excited and all smiles and talk about the future and success of this product.

In that scenario it would be very helpful for consumers of the information to be aware of the financial relationship between the podcast hosts and the project. Because it is misleading and plays directly into the hyperreality where it’s normal not to disclose these things.

Crypto podcasts sometimes rely on advertising revenue as their primary income generator. Sometimes crypto podcasts advertise ridiculous companies that have not shipped any products except a narrative. Sometimes they advertise genuinely risky products. To an unsuspecting listener, this can impact their perception of a company or product. It is obviously anti-signal but if you have weak cogsec you may be susceptible. Sometimes the podcast has invested in the company or project they are advertising without full disclosure.

It’s important to understand that the podcast complex is largely responsible for furthering the agenda of the hyperreality by creating artifacts which encapsulate an artificial world but are preserved for later consumption and analysis. The hyperreality now gets an archived history that can be discovered by any naive hero doing “research”.

Let’s say a famous researcher wants to create hype and buzz around a given topic so that their vc friends get FOMO and actively participate in investing in said researcher’s new vertical. This can be done simply by the researcher going on selected podcasts that allow them to control the narrative while leveraging the podcast’s distribution network.

The hosts of the podcast are happy because they have famous researcher making bold claims which drives clicks and views upstream of future ad sales and streaming revenue. The audience is happy because they believe they are receiving signal which will allow them to participate in the discussion in real life at conferences or on crypto twitter.

The vcs are happy because maybe they already were interested in the idea and now can see there is excitement so they can underwrite the new vertical and be seen as investing in the bleeding edge of innovation.

The researcher is happy because their idea makes its way to the top of the zeitgeist which brings them more influence and power, investment in their pet research idea, and marketing material to attract new naive heroes who will do the hard work of building the ideas out.

Some podcasters are aware of this and operate cynically, whilst others are too stupid to understand the elaborate manipulation scheme being foisted on them. I could go on but I’ll stop here.

Crypto Native Media

Historically crypto native media operated like traditional online media selling advertisements and or subscriptions for over the top data services or access to intel for revenue.

The more traditional outfits would at times run op-ed pieces written by either employees or a founder of a particular project. The op-ed piece would of course be pay for play. Sometimes there will be a PR agency acting as an intermediary extracting their fees on top of the cost of paying the media company for publication.

There were also cases where the founders of crypto native media companies borrowed $43 million from the operator of a compromised centralized exchange (FTX). There has also been acquisitions of crypto native media companies which has led to censorship of certain points of view.

Crypto native media often also operates their own flavor of the conference circuit. These are pricey engagements which can be wildly unprofitable to moderately profitable depending on structure, location, and competence of the operators. The purpose of the events is to be seen as the facilitator of the hyperreality discourse which signals credibility and reinforces to ecosystem participants that they should be included or consulted when considering media positioning and strategies.

This of course can lead to investment opportunities, KOL style marketing shills, and barely disclosed conflicts of interest. It’s important to note that projects and vcs that play ball with these companies can with little effort cement their place in the hierarchy of taste makers and important people to listen to and ties back to our earlier discussion on the podcast complex.

In fact some traditional crypto media focuses exclusively on building live streaming and podcast content for their audience. For them access to the key opinion leaders and high priests of the moment is imperative for retaining consumer attention and signaling that they are ahead of the curve on the latest trends.

There is no money in traditional journalism. Reporting the news is no longer important when the news breaks directly from specific accounts on CT. And as a result, this part of the ecosystem has mostly devolved into shilling and self-congratulatory declarations marketed as insights, research, or thought leadership.

The media layer no longer amplifies signal. Instead, it amplifies whatever the most powerful actors in the ecosystem want amplified. As stated before, not everyone is cynical. You can participate in a cybernetic system without knowing the role you are playing.

Research Forums and Publications

These are the places where technically minded folks can go to share their work, thoughts, and concerns around ongoing research ideas, architectural designs, product initiatives, and general technical discussions around the fabric of the technology - cryptography and distributed systems.

One common strategy that projects do is pick a notable research forum and post the details of their new project there in an attempt to get ecosystem participants interested. Sometimes the post comes with promise of bold new innovative technology which will enable new affordances for builders. Sometimes the post generates enough hype that illiquid safes and safts move in the secondary market as vcs fomo in.

Another common strategy is to use the forums as a place to announce new research initiatives. This is often done by ensuring that there is enough pre-baked consensus before the article is posted. You will note that the post has been reviewed by a cast of characters for the sole purpose of signaling deep relationship ties which make you think twice about engaging critically. These posts often put forth bold new ideas with incomplete technical design considerations but directional assurances that this is the right move for reasons. Note that sometimes the ideas are quite speculative but because of who the author is and the names attached to the post providing social proofs, ultimately nerd snipe enough people to work on the problem.

Sometimes forum posts are used to summarize pre-prints or research papers in an effort to get them read. This is typically pure marketing and distribution plays.

At times the forums are used for honest truth seeking discussion about particular architectural design choices or risks with implementation or gaps in research methodologies. And while this is the intended use case it is rarely used for this direct purpose. However many posts and discussions adopt this form factor to signal credibility.

The research forums have become marketing hubs more than research coordination hubs for discovering new ideas and talent.

Conclusion

The media ecosystem presents a hyperreality that is a necessity to track and participate in. Crypto twitter is captured by the social incentives and signaling load. The conference circuit is captured by money and profitability. The podcast industrial complex is captured by prisoner’s dilemma style relationships (Eyes wide shut). Crypto native media is captured institutionally dependent on access to powerful individuals and not news journalism. The research forums are captured by special interests exploiting them for marketing purposes.

This is the crypto media ecosystem. Clearly, it’s broken.