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Bahamian crypto exchange FTX supported several other firms during crypto winter.
The CEO of Bahamian crypto exchange firm FTX noted the reason by which they could have helped other crypto firms. Sam Bankman-Fried said that he and his company FTX holds a few billion dollars that could provide the required support to struggling crypto firms. In this way, he could help these companies stay firm and keep safe overall crypto space from getting destabilized.
FTX is one of the largest cryptocurrency in the world right now and currently headquartered in the Bahamas. Lately when the crypt market was going through heavy downturns, resulting in many crypto firms losing their liquidity, FTX and its CEO came as a life saver. However, now SBF believes that the worst part of the heavy liquidity crisis has passed.
Although, the same could not be said about the cryptocurrencies. The top cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) are still quite low their all time highs, with current trading prices at about $20,485 and $1,183 respectively.
In an interview, Sam-Bankman Fried, given he and his company had helped out many companies, said that now few more companies started reaching out to them. Although, he said, these companies are not in a terrible situation, yet several small crypto firms might fail.
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Earlier it was reported that Alameda Research, a well known crypto trading firm of Sam Bankman-Fried supported Voyager Digital. The crypto lender firm received a fund of about $20 million from Alameda Research. On top of that, it also received credit facilities around stablecoin and also a number of bitcoins.
It’s worth noting that the crypto lender had filed for bankruptcy given it had provided a loan to Three Arrows Capital, which also went into liquidation. FTX also gave a revolving credit facility worth $250 million, to an American crypto lending firm BlockFi last month.
On Friday, 1st July, BlockFi in an announcement stated about their deal that will give FTX an opportunity to purchase the firm on the basis of several performance indicators. SBF, while explaining the motive of his helping other crypto firms and bailing out, said that it was about protecting customers and their respective crypto assets.
FTX CEO also said that it would stop the ongoing liquidity issue that was damaging the crypto space. Further he went on saying that this step was taken to maintain the trust of consumers as they advertised. He said that trust is equally important and quite hard to get back once broken.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
