FTX Founder Looking To Acquire Insolvent Crypto Exchanges
Sam Bankman-Fried is on a mission. The current market situation has rendered some exchanges insolvent, and the FTX founder is positioning his companies to benefit from the market slump.
The market’s chaos presents an opportunity for the ambitious, and Bankman-Fried is pumped up, ready to expand his empire. Although rumors have been swirling around, the FTX founder is the architect of the current “crypto chaos.” However, the claims appear to have been exaggerated to paint Bankman-Fried negatively.
Bankman-Fried is Ready to Pounce on Small Exchanges and Miners
There have been unverified claims that Bankman-Fried is attempting to buy Robinhood. According to Forbes, the rumors have some elements of truth in them.
The Forbes statement revealed that Bankman-Fried had bought some stakes in crypto brokerage Robinhood. His company, FTX, has 7.6% of the shares and is considering a takeover.
As per Forbes, there are over 600 crypto firms in the world. Forbes quotes a previous statement by Bankman-Fried where he remarked that “there are small crypto exchanges that have been in insolvency secretly.”
The question is, are his two companies, Alameda Ventures, and FTX, considering buying them? But Bankman-Fried will likely choose which of them to purchase.
The FTX founder noted that his companies can still nurture some small exchanges back to their feet while others have no business left in them to warrant saving.
Furthermore, in what appears to be another twist, one of the ardent Proof-of-Stake (PoS) supporters wants some crypto miners. According to reports, Bankman-Fried has his sights on cryptocurrency miners, which appears strange to even his fiercest critic.
Alameda Ventures’ CEO has been working on acquiring mining firms Marathon Digital Holdings and Riots Blockchain. However, not much has been revealed about how the acquisition will take place.
Is Bankman-Fried’s Crypto Bailout Altruistic?
The crypto market has been trending downward in the past couple of weeks as price fluctuations enveloped the industry. As a result, Bankman-Fried sees this as a chance to help some crypto exchanges recover by bailing them out.
Moreover, FTX bailed out BlockFi, while Alameda Ventures bailed out Voyager. These bailouts are what Bankman-Fried called “sacrifices” necessary to keep the industry afloat in the meantime. About $750 million was disbursed to the already down crypto exchanges using his companies. There is no guarantee of return from the investments that have been made.
Bankman-Fried claimed that the cash infusion was to stabilize things and protect customers’ assets. He added that he would make any bad deals to help the crypto space sail forward amid the storm.
Bankman-Fried is seen as one of the daring CEOs in the crypto space. He has positioned his crypto exchange FTX as a force in the industry.
However, many believe that his actions are far from altruistic. It is claimed that he is smartly using the market conditions to his benefit should the market experience a healthy rebound.
His fortune will leap when the crypto market eventually recovers. For now, the industry awaits the imminent revival.