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Billionaire Sam Bankman-Fried (Sam Bankman-Fried) – the founder of the cryptocurrency exchange FTX and the company Alameda Research – believes that cryptans should not be discouraged because of the onset of crypto winter. During the SALT conference in New York, he explained that the market crash was part of a larger global market crash.
Since the beginning of this year, prices for all cryptocurrencies have decreased by more than 60%. Bitcoin has fallen from its high of $68,000 to just over $22,000. And Ethereum fell from $4891 to $1752. At the peak, the capitalization of all cryptocurrencies was $ 2.8 trillion, now the crypto industry is struggling to maintain a total capitalization of $ 1 trillion.
Things have fallen this year because dollars have gone up this year.
He explained that the Federal Reserve’s decisions to raise interest rates to counter inflation have “reduced the value of high-risk assets” overall. “It happens,” Bankman-Fried said. “But that doesn’t change the point or fact that blockchain still has a lot of use cases in terms of financial settlements, payments, social media, and other things.”
The head of the FTX feels good about the need for strict oversight of the industry by U.S. regulators: “There should be reasonable federal oversight of the industry. There should be an agency or several agencies that are responsible for guarding the space. The SEC and CFTC are the two most appropriate agencies for this — they will both play a role. One way or another.”
Bankman-Fried added that his exchange is actively communicating with both regulators and is working with Congress on a bill to regulate the industry. He looks to the future with hope and is confident that in a year the United States will roll out a normal, clear and fair bill.
Bankman-Fried has repeatedly said that he is ready to spend a tidy sum to save cryptocurrency companies facing a crisis in the market. He even revealed the criteria for choosing companies that deserve salvation.
Bankman-Fried believes that it is very important to restore consumer confidence, protect their interests and prevent the domino effect from affecting other companies in the crypto winter. The ongoing collapse turned out to be much, much worse than he had imagined. As the crisis engulfed every corner of the industry, even small firms turned to the FTX for financial assistance.
However, it will not be possible to save everyone – the head of the FTX allocated only $ 2 billion for crypto charity.
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