Sam Bankman-Fried, the CEO and co-founder of a major cryptocurrency exchange platform known as FTX, has stated that he does not mind being called the “J.P. Morgan of crypto” for his role in saving other cryptocurrency businesses. FTX has been referred to as the “J.P. Morgan of crypto” in recent years.
During a recent interview with Bloomberg, Bankman-Fried discussed where his company got the capital to execute agreements during the crypto winter that saw Bitcoin (BTC/USD) sink to lows of $17,600 in June. The conversation took place recently.
As a result of the bear market meltdown, many cryptocurrency companies were having a hard time making ends meet, but FTX had the financial resources to make purchases and give rescue facilities to struggling enterprises. Where did the exchange receive the money to do these agreements in the first place?
The manager of FTX elaborated as follows:
That being said, it was available in a few different forms. And you should know that one component of this was basically the FTX balance sheet – for example, we maintain all of our company cash in dollars. Consequently, throughout the course of the last few years, we were successful in raising many billion dollars. And our company is doing well financially.”
FTX was able to “partially” balance its balance sheet through past purchases despite the fact that it was spending money on mergers. Also, some of the deals, such as the one with crypto lender BlockFi, were handled by FTX.US, which, by the way, had received $400 million from investors earlier in the year. FTX.US was responsible for some of the deals.
The JP Morgan of the cryptocurrency industry.
Bankman-Fried has gained comparison and even been called the ‘J.P. Morgan of crypto‘ for his firm’s participation in bailing out some cryptocurrency companies, which is comparable to the situation that J.P. Morgan faced when Wall Street was in turmoil in the early 20th century. He claims that this does not disturb him to a significant degree.
When asked why he believed it was necessary for him to take action, he responded by stating that he believed it was “the right thing for the industry.”
He stated that his organization had a group of individuals working on the deals, and that those employees had a “very precise directive” – they were not to look for partnerships that would produce a fortune for FTX, but ones that were “decent.”
However, he emphasized that the team’s primary objective was to prevent the corporation from having its “face ripped off.” Instead of maximizing profits from negotiations, the primary objective was to get out of the situation. And he stated that FTX would have been supportive of that action had it been taken by another party.
The article “FTX CEO Bankman-Fried is alright with being branded the J.P. Morgan of crypto” was initially published on Invezz.