While many crypto giants have announced payroll reductions, the billionaire in the crypto industry, Sam Bankman Fried reversed the storm and has emerged as a hero of the time. The CEO of FTX, Sam Bankman Fried is willing to spend billions of dollars to acquire US derivatives exchange LedgerX, Japanese crypto exchange Liquid, or developer. Sam Bankman Fried, a 30-year-old billionaire and the founder of FTX warns that some crypto exchanges will soon fail after the failure of cryptocurrency platforms such as BlockFi and Voyager Digital.
Since last November, around $2 trillion has evaporated from the crypto market. This includes Luna’s two magnificent digital assets, a $16 billion stabilcoin, and a $40 billion crypto-asset linked to TerraUSD. Three Arrows Capital (3AC), a Singapore-based crypto trading company with Luna exposure, is practically insolvent. They’ve borrowed significant sums from corporations like BlockFi and Voyager Digital.
Sam Bankman Fried, FTX CEO Warns: Some Crypto Exchanges Already “Secretly Insolvent”
Bankman Fried has provided around $750 million in credit lines to survive Three Arrows’ default. Whether Sam Bankman Fried can recover his investment remains a question and he says, “you know we are willing to do a little bad deal here if that’s what it takes to sort of stabilize things and protect customers”.
Sam Bankman Fried’s FTX is a massive whale in the crypto world and has millions of customer accounts. Some crypto analysts say that Sam Bankman Fried is worried about the failures of the crypto platforms that continue during the euphoria of rising crypto prices. “There are companies that are basically too far gone and it’s not practical to backstop them. I think that the really bearish views on Tether are wrong. I don’t think there is any evidence to support them”, said Sam Bankman – Fried.
FTX remained profitable, whereas Coinbase lost $432 million in Q1 2022. Also, Conbase’s stock is almost 90% down from its all-time high. Bankman Fried is also targeting crypto miners rapidly scaling to take advantage of the 21st-century digital gold rush.
Many publicly trading miners have lost their digital holdings and this includes the 60% loss of Marathon Digital Holdings and Riot Blockchain. Tether has a market value of over $70 million, the largest dollar-pegged stablecoin in the world. Sam Bankman Fried thinks that the adverse views on Tether are fake and unfounded.