FTX Still Has a Few Billion to Spare for Struggling Crypto Firms, Sam Bankman-Fried Says
Brian Njuguna Jul 07, 2022 09:45
FTX, a leading crypto exchange, is willing to splash a few billion to help struggling companies amid the present cryptocurrency winter, according to the exchange’s CEO and founder, Sam Bankman-Fried.
FTX, a leading crypto exchange, is willing to splash a few billion to help struggling companies amid the present cryptocurrency winter, according to the exchange’s CEO and founder, Sam Bankman-Fried.
Bankman-Fried has recently emerged as the white knight in the crypto sector because he has been giving different digital asset platforms a lifeline by bailing them out.
For instance, he recently injected $250 million in capital into the troubled crypto lender BlockFi with the option of acquiring it. As a result, BlockFi CEO Zac Prince revealed that the company was on track to bolster its balance sheet and general platform strength.
Various firms have found themselves on the receiving end with the crypto market experiencing a bloodbath based on tightened macroeconomic factors.
FTX has been getting requests for help from different companies. “We're starting to get a few more companies reaching out to us,” Bankman-Fried said.
Through his crypto-trading firm Alameda Research, Bankman-Fried also rescued cryptocurrency brokerage firm, Voyager through a $200 million loan in June.
The FTX CEO acknowledged that the objective of the bailouts was to eliminate panic in the crypto ecosystem and protect investor assets. He pointed out:
“Having trust with consumers that things will work as advertised is incredibly important and if broken is incredibly hard to get back.”
This revelation comes days after Bankman-Fried acknowledged that he was willing to bailout jittered crypto miners who had been borrowing for the past two years to spur expansion plans, Blockchain.News reported.
Unforeseen circumstances like the Ukraine invasion of Russia and the collapse of LUNA and UST tokens have triggered a downtrend in the crypto market, whose value has dropped to less than $1 trillion from nearly $3 trillion recorded in November last year.
Furthermore, Bitcoin (BTC) has lost at least 70% of its value from the all-time high (ATH) price of $69K recorded in November 2021.
Therefore, Bankman-Fried’s bailout plans are a welcome move in the crypto sector because they are reigniting the fire.
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