It’s Sam Bankman-Fried’s second. The FTX and Alameda Ventures golden boy put each of his corporations in a profitable place and appears to be carrying the spoils away. The recent Forbes piece about secretly bancrupt exchanges places it finest, “Like J.P. Morgan in the course of the inventory market panic and crash of 1907, Bankman-Fried is benefiting from the crypto chaos to broaden his empire.” Rumors about his involvement in engineering the “crypto chaos” look like tremendously exaggerated.
“Over the previous couple of weeks, the crypto market has been trending down. The contagion impact of the Terra/ Luna extinction occasion rocked each firm on the market, most of all those that supplied yield on cryptocurrency deposits like BlockFi and Celsius and hedge funds like Three Arrows Capital. These corporations’ issues and doable liquidation of belongings, in flip, despatched the crypto market into much more turmoil.”
Within the Fobes piece, talking about BlockFi and Voyager’s bailouts, they paint the same image with a vital distinction. Right here, Bankman-Fried is performing a sacrifice:
“Between FTX and his quantitative buying and selling agency Alameda, he supplied the businesses with $750 million in credit score strains. There isn’t any assure that Bankman-Fried will recoup his funding. “You recognize, we’re prepared to do a considerably dangerous deal right here, if that’s what it takes to type of stabilize issues and defend clients,” he says.”
And, as you possibly can learn, that’s in accordance with Bankman-Fried himself. Just a few strains under, the article casts doubt on his evaluation, “Bankman Fried’s money infusions are removed from altruistic. He has emerged as a wise vulture capitalist within the beleaguered crypto market, understanding full effectively that his personal fortune will depend on its wholesome rebound and progress.”
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Bankman-Fried Units Sight On Small Exchanges And Miners
The rumor that FTX is searching for a way to acquire Robinhood circulated at the moment. The Forbes article elaborates on that topic. “Bankman Fried has additionally purchased into crypto brokerage Robinhood, the place FTX has already collected a 7.6% stake, and is rumored to be contemplating an acquisition.”
Not solely that, Forbes estimated that there are greater than 600 crypto exchanges on this planet. Then, they quote Bankman Fried claiming, “there are some third-tier exchanges which are already secretly bancrupt”. Is the implication that his two corporations are contemplating shopping for a few of them? Possibly. Nevertheless, Bankman Fried can be choosy about precisely which of them:
“There are corporations which are mainly too far gone and it’s not sensible to backstop them for causes like a considerable gap within the steadiness sheet, regulatory points, or that there’s not a lot of a enterprise left to be saved.”
In an odd flip of occasions Bankman-Fried, one among Proof-Of-Stake’s largest proponents, expressed curiosity in “crypto miners”. Even stranger, the article then proceeds to listing two bitcoin mining corporations. Who launched the phrase “crypto” within the dialog, Bankman-Fried or Forbes?
“Bankman-Fried additionally has his eye on crypto miners, lots of whom leveraged their steadiness sheet at breakneck tempo to rapidly scale and make the most of this twenty first century digital gold rush. The shares of publicly-trading crypto miners together with Marathon Digital Holdings and Riot Blockchain are down greater than 60% 12 months up to now.”
Ending With Tether For Some Motive
With out warning or obvious motive, the Forbes article ends with Sam Bankman-Fried’s ideas on Tether. “I believe that the actually bearish views on Tether are improper…I don’t suppose there may be any proof to assist them,” he says.
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