Bankman-Fried, a target and a dart


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 latest Forbes piece about secretly bancrupt exchanges places it finest, “Like J.P. Morgan throughout the inventory market panic and crash of 1907, Bankman-Fried is profiting from the crypto chaos to broaden his empire.” Rumors about his involvement in engineering the “crypto chaos” seem like significantly exaggerated.

NewsBTC reported on FTX’s bailout of BlockFi and Alameda bailing Voyager. Within the first article, we summarized the congested macro scenario:

“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 provided yield on cryptocurrency deposits like BlockFi and Celsius and hedge funds like Three Arrows Capital. These corporations’ issues and doable liquidation of property, in flip, despatched the crypto market into much more turmoil.”

Within the Fobes piece, talking about BlockFi and Voyager’s bailouts, they paint an identical image with an important distinction. Right here, Bankman-Fried is performing a sacrifice:

“Between FTX and his quantitative buying and selling agency Alameda, he offered the businesses with $750 million in credit score strains. There isn’t any assure that Bankman-Fried will recoup his funding. “You understand, we’re prepared to do a considerably unhealthy deal right here, if that’s what it takes to form of stabilize issues and shield prospects,” he says.”

And, as you’ll be able to 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, realizing full effectively that his personal fortune depends upon its wholesome rebound and progress.”

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Bankman-Fried Units Sight On Small Exchanges And Miners

The rumor that FTX is in search of a technique to purchase Robinhood circulated right this moment. The Forbes article elaborates on that topic. “Bankman Fried has additionally purchased into crypto brokerage Robinhood, the place FTX has already accrued 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 the earth. 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. Nonetheless,  Bankman Fried will probably 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 in all 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 benefit from 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 Cause

With out warning or obvious motive, the Forbes article ends with Sam Bankman-Fried’s ideas on Tether. “I feel that the actually bearish views on Tether are mistaken…I don’t assume there may be any proof to help them,” he says.

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