News hardware This man wants to save the crypto industry despite the fall of Bitcoin
Published on 07/23/2022 at 17:40
While we are witnessing the carnage of certain cryptocurrency giants following the downward trend of all virtual currencies on the market, billionaire Sam Bankman-Fried has taken it into his head to save certain soldiers of the crypto in distress. And why not expand your empire along the way…
FTX to the rescue of Voyager Digital customers
Since the start of the Bitcoin decline, the whole market has been pulled down, including companies in the sector. By falling from €60,000 to €20,000, bitcoin caused a loss of liquidity in the coffers of several crypto companies.
For this reason, the exchange platform Voyager Digital is facing a delicate situation, putting the savings of its customers at risk. Indeed, clients no longer have access to their investments for a few weeks.
This insolvency puts Voyager Digital on the verge of bankruptcy… Nevertheless, the CEO of the second largest cryptocurrency platform in terms of volume, intends to help Voyager Digital’s customers.
Sam Bankman-Fried, CEO of FTX, has reportedly made a proposal to help Voyager DIgital customers whose funds have been frozen for a few weeks. To do this, the giant offers to pay off the debts by buying the platform’s cryptocurrencies with the help of its investment fund Alameda Ventures. Thus, if the proposal is accepted FTX will own the name and the various intellectual properties of Voyager Digital.
This action would allow Sam Bankman-Fried to develop the clientele of his platform since the unlocked cryptos will be accessible in early access, not on Voyager Digitale, but on FTX (when opening an account).
“Clients are not required to register with FTX and this would be completely voluntary. FTX also does not require a minimum number of clients who should agree to participate. Any client not wishing to register with FTX would retain all of their rights and claims in the bankruptcy proceedings, but would not receive early access to a distribution on their claim through FTX. explains FTX in a press release.
The initiative is therefore not totally disinterested, the billionaire Sam Bankman-Fried, known as SBF, clearly transmitted his intentions at the beginning of the year: to develop his kingdom in the sector, and this, despite the winter of cryptos.
FTX wants to build a crypto empire: BlockFI, Bithumb…
After having proposed the acquisition of the Blockfi cryptocurrency platform for 240 million dollars, the 60th billionaire in the world believes that a new opportunity is offered to him.
According to Bloomberg magazine, FTX is in full negotiation with a competing crypto-exchange: Bithumb. Negotiations regarding the takeover of the platform would last “for several months” but for the moment nothing has been done.
Bithumb is a cryptocurrency exchange platform created in 2014. Considered a pioneer in the sector, the famous company is however facing financial difficulties following the crash of the LUNA cryptocurrency last May.
This “mercato” of cryptos is not in its infancy… Since the beginning of the year FTX has already taken over companies in the sector like Liquid and Bitvo.
The fall in the value of cryptocurrencies in recent months has made crypto companies pay a high price, but also, and above all, customers. Because of this, the industry gets bad publicity and users lose confidence. Nevertheless, the bear market (bear market in crypto), does not only make people unhappy. Sam Bankman-Fried intends to take advantage of the difficulty of certain companies in the crypto sector to expand his empire. The CEO of FTX understands this well, so he believes that his rescue strategy does not only involve companies in difficulty, but the entire sector.
