This is the Sam Bankman-Fried moment. FTX and Alameda Ventures Golden Boy put both their companies in a win-win situation and seem to be taking the loot away. recent forbes piece It’s best about secretly bankrupt exchanges, “During the stock market panic and the crash of 1907, like JPMorgan, Bankman-Fried is taking advantage of crypto chaos to expand his empire.” Rumors about his involvement in engineering the “crypto chaos” appear to be greatly exaggerated.
Reported by NewsBTC BlockFi’s bailout of FTX And Alameda Belling Voyager, In the first article, we summarized the congested macro situation:
“Over the past few weeks, the crypto market has slumped. The contagious impact of the Terra/Luna extinction event shook every company, most of which saw cryptocurrency deposits like BlockFi and Celsius and yields on hedge funds like Three Arrows Capital. In turn, the problems faced by these companies and the potential liquidation of assets put the cryptocurrency market in even more turmoil.”
In the Forbes piece, speaking about BlockFi and Voyager bailout, they paint a similar picture with one important difference. Here, Banksman-Fried is making a sacrifice:
“Between FTX and their quantitative trading firm Alameda, they provided $750 million in lines of credit to companies. There is no guarantee that Bankman-Fried will recoup his investment. “You know, we got some bad deal here. We are willing to do so, if it has to be done to stabilize things and to protect customers,” he says.
And, as you can read, that is according to Bankman-Fried himself. A few lines down, the article casts doubt on his assessment, “Bankman Fried’s cash investments are far from philanthropic. He has emerged as a smart vulture capitalist in the troubled crypto market, knowing full well that his own fortune depends on his healthy bounce and growth.”
Robinhood price chart on NASDAQ | Source: TradingView.com
Banksman-Fried keeps tabs on smaller exchanges and miners
Rumor is looking for FTX a way to get robinhood Aired today. The Forbes article elaborates on that topic. “Bankman Fried has also bought into crypto brokerage Robinhood, where FTX has already amassed a 7.6% stake, and is rumored to be considering an acquisition.”
Not only this, Forbes estimates that there are more than 600 crypto exchanges in the world. Then, he quoted Bankman Fried as claiming, “There are some third-tier exchanges that are already covertly bankrupt”. Does this mean that their two companies are considering buying some of them? Perhaps. However, what Bankman Fried would really like about:
“There are companies that have basically gone too far and it’s not practical to backstop them for reasons like substantial holes in balance sheets, regulatory issues, or no business left to be saved.”
In a strange turn of events, Bankman-Fried, one of the biggest proponents of proof-of-stake, expressed interest in “crypto miners”. Even stranger, the article goes on to list two bitcoin mining companies. Who introduced the word “crypto” in conversation, Bankman-Fried or Forbes?
“Bankman-Fried also has an eye on crypto miners, many of whom are using them to rapidly grow their balance sheets at breakneck pace and take advantage of the digital gold rush of the 21st century. Including Marathon Digital Holdings and Riot Blockchain. The stock of publicly traded crypto miners is down over 60% to date.
ending with tether for some reason
Without warning or apparent reason, the Forbes article ends with Sam Bankman-Fried’s thoughts on Tether. “I think the really bearish views on Tether are wrong… I don’t think there is any evidence to support them,” he says.
Featured Image by 41330 on Pixabay| Charts by TradingView