FTX exchange CEO Sam Bankman-Fried has recently emerged as a rare “savior” of the cryptocurrency market on the brink of collapse. But is that true?
FTX CEO said “will be responsible” for the market
As updated in a recent Coincu News article, earlier this week, FTX CEO Sam Bankman-Fried spoke directly about the responsibility he feels himself needs to take action to bail out the companies cryptocurrencies are in crisis as part of efforts to support the market through the current difficult period. Mr. Sam Bankman-Fried said his main concern is minimizing losses and preventing bad debt from spreading throughout the industry.
True to its claims, in just 3 days, FTX provided the struggling lending platform BlockFi with a loan of $250 million and “guaranteed” a loan of $485 million to crypto company Voyager Digital through the investment fund Alameda Research.
Is the fact that FTX CEO’s hand to save the crypto market is really a “heroic” action?
FTX’s flash “hit series” comes at a time when some of the biggest companies in the crypto industry including Coinbase, Crypto.com, and Gemini have all announced staff cuts. Influential hedge funds like Three Arrows Capital are on the verge of default again, while other prominent lenders such as Celsius and Babel Finance have halted customer withdrawals.
More generally, over the years, Mr. Sam Bankman-Fried has spent a lot of money acquiring various crypto companies such as US derivatives exchange LedgerX, Japanese crypto exchange Liquid, or game developer Good Luck Games, 7.6% stake in Robinhood, and more. All of these platforms have gone through at least some negative legal and hacking hurdles. Therefore, the “lifesaver” that the CEO of FTX offers is not simply a “sense of responsibility” but also a way for FTX to expand and develop.
Cryptocurrencies and the overall financial market are fundamentally still at the opposite end of the spectrum. Despite certain efforts in the process of connecting with governments to achieve regulatory clarity, cryptocurrencies sometimes seem to fall outside the standards and safety nets established in the world traditional finance. One reason to reinforce the point of view helps Mr. Sam Bankman-Fried comfortably “roam” in the crypto world.
However, it is still too early to conclude whether the CEO of FTX is truly becoming a “hero” for the crypto world as everything including the market crash and FTX’s every move has only just begun. begin. However, combined with the chain of events mentioned in the article, perhaps Mr. Sam Bankman-Fried is losing the decentralization of crypto in the long term by his act of buying many companies in the cryptocurrency industry.
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