Odaily Planet Daily report: Nick Tomaino, founder of 1confirmation, commented in a post on the crisis surrounding the AI investment fund Situational Awareness, stating that recent discussions around the fund reveal a long-standing issue in the investment community: many so-called "elites" and "smart money" lack basic risk assessment capabilities.
Tomaino said he is not familiar with all the details of the incident and does not wish to comment on the specifics of the liquidation process, but he believes a deeper issue is that many investors, driven by wealth and attention, have gradually overlooked facts, risks, and judgments about others. He cited the collapse of FTX as an example, noting that many people could detect irregularities after brief interactions with the founders, yet substantial "smart money" continued to invest and endorse the project in pursuit of returns and market narratives.
Tomaino noted that a similar phenomenon occurred among the founders and investment circles supporting Situational Awareness: the same type of investors chased grand narratives, provided funding, and promoted the project, but the fund ultimately struggled due to high-risk bets and market reversals. Industry participants have learned from this experience and are striving to avoid repeating the cycle of "chasing trends—ignoring risks—collective losses."