Crypto news sites like CoinDesk, The Block, and Decrypt planted their flags alongside legacy publications this month while reporting on the meltdown of Sam Bankman-Fried's crypto exchange FTX.
The calamity rattled crypto markets, ignited turmoil at other large crypto firms, and has shined a light on the crypto news sites covering the crisis. It's all unfolding as media companies fend off cuts and layoffs and an industry-wide slump in advertising revenue, which has seen big crypto companies like Grayscale, Binance, and Coinbase slash their advertising budgets.
"The economy itself is weaker, and therefore marketing spend is not what it was," Michael Casey, the chief content officer at CoinDesk, told Insider in an interview in November. "We have to compete with all of the other publications that are looking to grab those marketing dollars and say, 'Why do you want to be with CoinDesk and not with them?'"
"The pie is smaller," he added. "We have to fight for a bigger piece of it."
A number of CoinDesk's advertisers have confirmed they'll renew their ad spend with the outlet next year, Casey said.
Founded in 2013, CoinDesk has grown into one of the most recognizable crypto-focused media companies today, with journalists who formerly worked at legacy outlets like the Wall Street Journal, the New York Times, and Bloomberg News throughout its ranks. The site now finds itself in the center of the storm following Bankman-Fried's stunning fall from grace.
The outlet's November 2 scoop about Bankman-Fried's trading firm, Alameda Research, exposed its curious relationship with FTX, and in turn triggered an uproar that culminated in FTX's bankruptcy. The company's bankruptcy hearing began this week.
FTX's implosion also unleashed a domino effect that has imperiled other crypto exchanges like Genesis, a lender that now faces a liquidity crisis and the specter of its own possible bankruptcy, reports this week warned.
Genesis is owned by Digital Currency Group, the same parent company that owns CoinDesk. Whatever comes of the travails at Genesis, the story illustrates how the crypto community is deeply intertwined, and troubles at one firm can put stress on the whole ecosystem. The news outlets covering this are also subject to that stress, given that they rely on the crypto community for both audience and advertising. Media watchers and crypto enthusiasts have watched the situation unfold with fascination.
"The most interesting story in journalism right now is CoinDesk," Pat Regnier, a finance editor at Bloomberg Businessweek, tweeted over the weekend. "They did a story that unraveled the whole market, and now it's crushing DCG, the company that owns them."
A DCG spokesperson previously said the company would "temporarily suspend redemptions and new loan originations" in a decision that "has no impact on the business operations of DCG and our other wholly owned subsidiaries." In an email to Insider, Casey reiterated that the incident does not impact CoinDesk's business. The outlet has also published a number of stories tracking the Genesis fallout.
But beyond the crypto community, publications like CoinDesk, The Block, and Decrypt are also part of the broader media sector, where the tremors are mounting.
Layoffs are expected to hit NBCUniversal in early 2023, Insider first reported this week. Protocol, a tech publication owned by Insider's parent company Axel Springer, shuttered this month after two years in business, laying off its team of about 60. And last week, Morning Brew — a newsletter publisher in which Insider acquired a majority stake in 2020 — cut 14% of staff, according to a leaked memo shared by a Semafor reporter on Twitter. Among those who lost their jobs were two journalists who worked on Morning Brew's crypto newsletter, both of whom previously worked at Insider.
Casey suggested that, as with any high-pressure situation, necessity is the mother of invention. His publication is exploring new avenues to get through the tempest, ranging from conventional advertising to new opportunities in the rapidly-developing digital economy, he said.
"I think that any media company, but especially a crypto company, needs to be thinking about how it will transition into a world where things like NFTs and the metaverse are actually an element of what you're doing," he told Insider.
"Advertising is still critical to all of our businesses, but there is a real opportunity to think outside the box," he added. "Maybe in these moments of crisis is when you seize them for the opportunity that they are."
Check out Insider's look at how the FTX story has put crypto news outlets like CoinDesk on the map — and their strategy to keep their winning streak alive even after the story fades.
Are you a crypto or media insider with insight to share? Contact this reporter. Reed Alexander can be reached via email at ralexander@insider.com, or SMS/the encrypted app Signal at (561) 247-5758.
Disclosure: Axel Springer is Insider's parent company.
Protocol was acquired by Axel Springer in 2021.
Insider acquired a majority stake in Morning Brew in 2020.
