Sam Bankmen Fried, the CEO of FTX and the youngest billionaire in the world, came to the rescue of the lending platform BlockFi by “injecting” $250m and striking a partnership. This kind of move is not new to the SFB playbook.
The entrepreneur has a track record of bailing out troubled crypto-based firms. Last year, SBF coordinated a similar debt financing solution for Japanese exchange Liquid Group, and crypto-exchange Voyager in 2021. His firm FTX went on to purchase Liquid Group earlier in the year.
So the question begs: Is SBF executing these deals with honorable intentions, or is he solely focused on expanding his influence in the cryptoverse?
SBF, who has been described as an “effective altruist,” recently joined NPR for an interview in which he mentioned his “responsibility to seriously consider stepping in” to save the crypto contagion after the Terra and 3AC collapse financially but also to save its image in the face of regulators.
After seeing the questionable actions of crypto figures such as Do Kwon, Zhu Su, and Justin Sun during the market meltdown, Bankman-Fried appears to be interested in progressing the industry at least at face value. The man literally works close to 24 hours a day and sleeps in a beanbag chair. Greed doesn’t appear to be his motive. Not only is SBF’s FTX exchange not cutting jobs during the downturn, but the fact he’s bailing some companies from the depth of despair shows his true intentions of bettering the sector. So what if he makes a few bucks from mismanaged companies along the way?
The stock market rebounded from its yearly lows today, with the S&P 500 and Nasdaq enjoying a 2.45% jump. Moreover, despite Bitcoin’s lackluster performance, optimism seeped into the altcoin market.
Bitcoin (BTC) climbed to $21,700 before being sold off by the US markets. It completed the day at $20,712, up +0.76%, and formed an inverted hammer. This particular hammer pattern tends to signal buyers’ exhaustion during local tops, so Bitcoin may fall to test the $19,700 support. Decreasing volume during the slight rebound helps support this evidence.
|US markets close||Gain|
|Protocol (Coin)||Price ($)||Gain (%)|
|Shiba Inu (SHIB)||0.000010||+26|
|WOO Network (WOO)||0.18||+19|
|Bitcoin Fear and Greed Index||11 Extreme Fear|
|“Crypto” Google Trends 90d||26|
|“Bitcoin” Google Trends 90d||98|
Important economic events today:
Vitalik Buterin criticizes the BTC stock-to-flow model.
Whale pays down Solend (SLND) debt. According to Wu Blockchain, the debacle on Solend (SLND) looks to improve after the whale who provided 80% of Solend’s SOL liquidity has stepped in to pay down the debt.
Maple Finance running low on liquidity. Crypto lending protocol Maple Finance (MAPLE) said the protocol is running low on liquidity, and there will be instances when lenders will have to wait for borrower repayments before removing capital. The issues likely stem from the Celsius former delegation to the protocol.
Protocol level tidbits:
Uniswap (UNI) enters the NFT landscape. Uniswap Labs has acquired NFT aggregator Genie and will now allow users to trade NFTs on its platform. Moreover, past users of Genie are eligible for a USDC airdrop in the coming months. Uniswap is by far the busiest decentralized exchange (DEX) in crypto, and the addition will only solidify its position in terms of revenue, volume, and users.
The cryptoverse boasts a colorful cast of characters. Buterin, Zhu Su, SBF, Justin Son, Do Kwon, and Changpeng Zhao are some of the names that come to mind. During capital-happy bull runs, it’s hard to tell them apart, but when the going gets tough, our perceptions can change: goodies can become baddies, baddies can become goodies, and previously invulnerable figures can come down crashing hard.
One of the embodiments of the crypto industry is its transparent nature. Not only can people see the transfer of capital in real-time, but the curtain is truly lifted when things go to shit. SBF might just be the guy we need. Only time will tell. So while crypto remains in infancy, it’s good to weed out the destructive and unsustainable. Or at least, bring them to light. Then, the path becomes a little clearer as we advance.
Now, imagine if TradFi had the transparency of this industry and crypto ledgers?
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