Crypto is in trouble, and Sam Bankman-Fried is willing to stake a billion dollars believing he can actually fix it.
Sam Bankman-Fried, the owner of FTX Cryptocurrency Derivatives Exchange, has positioned himself as the industry’s messiah as the crypto market continues to decline. As a result, Crypto investors closely monitor his actions after months of market unrest.
This year, he worked to stabilise one unstable digital-currency lender and bailed out another. In addition, he bought exchanges for cryptocurrencies in Japan and Canada. Finally, he appeared in magazine advertisements to keep mainstream investors interested in cryptocurrencies despite the decline.
However, he wants to use the entire $1 billion bailout fund this time to support the beleaguered crypto economy. The 30-year-old, currently worth $11.9 billion, has no idea if the bet will be profitable. But he’s obviously putting his money where his mouth is after giving $400 million to BlockFi and buying the entire exchange Liquid when it was hijacked.
“We want to do what we can to stem contagion, and sometimes that’s going to mean that we try to help out in cases where it’s not enough,” Bankman-Fried stated. “If that never happened, I’d feel that we were being way too conservative.”
Bankman-Fried added that he is investing $1 billion that he can prevent the industry from additional self-harm even though he believes its flaws have been “flushed out of the system.”
Over two dozen unsuccessful crypto companies called the company, seeking Bankman-charity, according to FTX chief Ramnik Arora.
However, it goes further than this. According to reports, Bankman-Fried informed that FTX keeps “a few billion” in US dollars on hand to reach agreements, but he remained silent regarding the number of additional bailouts he has in sight.
The crypto market is based entirely on trust. If the glee and confidence of this 30-year-old billionaire is any indication, all the industry needs to recover is a billion dollars.