FTX Has a Few Billions to Support Struggling Crypto Projects, The Worst of Liquidity Crunch Possibly Over, Says SBF 13

FTX Has a Few Billions to Support Struggling Crypto Projects, The Worst of Liquidity Crunch Possibly Over, Says SBF

Summary:

  • Sam Bankman-Fried has stated that FTX has a few billion to support struggling crypto firms.
  • He also believes that the worst of the liquidity crisis in crypto might have passed.

FTX’s founder and CEO, Sam Bankman-Fried, has stated in an interview that the crypto exchange has a few billion set aside to assist struggling crypto firms that have the potential of destabilizing the digital asset industry. In addition, Mr. Bankman-Fried believes that the worst of the crypto liquidity crunch is likely over.

He added that the crypto exchange has seen more crypto companies reach out during the current trying times. He said:

We’re starting to get a few more companies reaching out to us…Having trust with consumers that things will work as advertised is incredibly important and if broken is incredibly hard to get back…If all that mattered was one single event, we could get above a couple billion

What We’ve Seen So Far Might be Healthy. It Has Flushed Out Some of the Leverage.

During the interview, Mr. Bankman-Fried was asked what he thought about the ongoing crypto drawdown effects on crypto projects. He replied that it might be somewhat healthy in that it flushes out some of the leverage in the industry. He said:

I think what we’ve seen so far might be healthy. You know to the extent that what it is doing is flushing out some of the leverage that had to get flushed out. Flushing out some of the players that just were not capitalized well enough you know. I think that could ultimately end up being moderately healthy for markets.

FTX Rumored to Be Eyeing Robinhood.

Sam Bankman-Fried’s comments on FTX’s cash holdings and the possibility of bailing out more crypto projects come after the exchange, and Alameda Research lent a financial helping hand in the form of loans to Voyager Digital and BlockFi.

There were also rumors of FTX purchasing the popular trading application Robinhood. However, Mr. Bankman-Fried pointed out that it might be too early to conclude a deal had been made. He said:

I don’t think you rule anything out…There is no sort of active discussions…you know around an M&A or anything like that. It was primarily more of a…you know investment and you know again…always excited to talk to them about potential partnership opportunities.