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Cryptographic White Knight says he has "billions" to save the industry

Sam Bankman-Fried, head of FTX, one of the largest crypto exchanges, still "numbers" to him and his company He said he had a billion. It could make the digital asset industry even more volatile, but the worst liquidity crisis is likely to be over.

Bankman-Fried, 30, from California, lives in Bahama, the home of FTX, but in the last few weeks has become a white knight of cryptography,as the price of cryptocurrency Createdthrowing a lifeline on a sluggish digital asset platform. Bitcoin is down about 70% from its November high of $ 69,000.

"We are starting to get in touch with a few more companies," Bankman-Fried said in an interview. These companies are generally not in a dire situation, but some small crypto exchanges can still fail.

Bankman-Fried's crypto trading company, Alameda Research, provides crypto lender Voyager Digital with $ 200 million in cash and a stable coin revolving credit facility, as well as a bitcoin facility. Did. Crypto Hedge FundThree Arrows Capital. On Wednesday, Voyager filed for bankruptcy. 

Also, in June, FTX handed over a $ 250 million revolving credit facility to cryptocurrency lender BlockFi, and on Fridayto FTX based on a specific performance trigger. Announced a contract givingthe right to buy. 

Illustration of cryptocurrencies
Reuters

The purpose of the bailout is to protect the customer's property and spread it. From the bounce through the system that was to stop Bankman-Fried said.

"It's very important to trust consumers to work as advertised, and it's very difficult to get it back if it breaks," he said.

In January, FTX announced FTX Ventures, a $ 2 billion venture capital fund focused on investing in digital assets. It is used to help rescue companies that are liquid but lack assets.

"Each of these will be more and more expensive," says Bankman-Fried, and the company still has enough cash to trade $ 2 billion. He added that he was. requirement.

"If only one event was important, it could be over 2 billion," he said, emphasizing that it wasn't his taste.

Once or twice, Bankman-Fried has arbitrated billions of dollars in cryptocurrency prices in Asia since 2017, but failed with his own cash if it didn't make sense. He said he had blocked the crypto company. For FTX to do so.

"FTX has shareholders, we have a duty to do reasonable things by them, and I certainly find it more comfortable to burn my money," he said. Said.

Bankman-Fried also revealed in May that it took advantage of the trading app's decline in stock prices to personally acquire a7.6% stake in Robinhood Markets. .. 

Forbes reduced the net value of Bankman-Fried to about $ 24 billion this year, but according to Bloomberg's Billionaires Index in May, a crypto crash halved the number. It is said that it has decreased to.

Sam Bankman-Fried
Via Reuters

Crypto Winter

Federal Reserve is proactive Investors have fled the crypto market asthe rate of increase to combat hyperinflationhas begun.

The cryptocurrency price plunge called "Crypto Winter" may have bottomed out due to stable prices, but it depends heavily on macroeconomic conditions Bankman-Fried, 2014 graduate of Massachusetts Institute of Technology.

"I don't think it's a real threat to the industry, but I think it's a lot worse than I expected," Bankman-Fried said.

Bankman-Fried began his financial career at quantitative trading company Jane Street, after which he founded crypto trading company Alameda Research and FTX in 2019. FTX was worth $ 32 billion in January. 

He plans to donate 99% of his property and will support candidates in the 2024 election cycle, focusing on issues such as pandemic prevention and bipartisanism. He said he could spend up to $ 100 million on it.

Rival crypto exchanges face layoffs after previous hires, but FTX has about 300 employees and Crunchbase has fixed Alameda's staff to less than 50. I am.

"Every quarter this year, we have more employees than in the previous quarter, but we try not to grow insanely fast," he said.