'Something smells real funny here'

Two-and-half-years ago an infamous event in the crypto world took place called Crypto Bahamas. It featured big names such as Bill Clinton, Tony Blair, Tom Brady, and Giselle to name a few. The budget was stratospheric. Costing millions alone just for these high-profile speakers.

And it was presented by FTX and SALT as “an invitation-only event featuring collaboration and networking among leading players in the crypto and traditional finance industry.” FTX founder Sam Bankman-Fried (known in the industry as SBF) took part as a speaker and networked with the awe-struck guests.

Crypto Bahamas took place in Nassau in April 2022, and just months later Bankman-Fried was arrested in The Bahamas over fraud and conspiracy charges and is currently serving 25 years in jail.

“I met SBF and I remember telling someone who was there at the conference with me ‘either I don't get it or something smells real funny here’, but it couldn’t be that I don't get it because I'm right most of the time,” Paul "The Profit" Dawalibi told The Crypto Radio.

Indeed, the star-studded event and huge budget was masking deep problems at FTX, which declared itself bankrupt in November 2022.

“I think Crypto Bahamas was the peak of everything that’s wrong with the crypto industry. It was like all sizzle, no steak. And again, it's easy to be judgmental. It's easy to point fingers and say it's all the fault of crypto people.

“But no one's making any money, and then half the people disappear, and they just move on to the next hype cycle. And the half that are left actually build something useful,” added Dubai-based Dawalibi.

Dawalibi was at the four-day event to speak on the subject of gaming. He is the host of CNBC Arabia's game changers and is a highly sought-after gaming expert advisor in the region.

“I did get booed in the beginning because of my position on crypto gaming, where I called them out on what wasn't working. To an audience of crypto people that was maybe tough to take, but I ended up being right. I was especially right about certain things I discussed there.”

Dawalibi instead hung out with his friend Kevin O'Leary at Crypto Bahamas, a fellow Canadian businessman and investor, avoiding the glitz and glamour, plus the spectacle of SBF.

“Look, it was eye opening for me, because I hadn't realized how much fervor had creeped into the crypto market until I was there. And I was not an insider. I was not building something in crypto. I was doing stuff in gaming, and I didn't realize just how bad the hype had got.”