FTX is a major crypto exchange and will spend a few million to help struggling companies in the current cryptocurrency winter. according to the exchange’s CEO and founder, Sam Bankman-Fried.
Because he has provided financial support to various digital asset platforms by bailing them out, Bankman-Fried recently emerged as the “white knight” in crypto.
He recently invested $250 million capital in the crypto lender BlockFi, with the possibility of buying it. BlockFi CEO ZacPrince revealed that the company was on course to strengthen its balance sheet as well as overall platform strength.
Many firms are now being hit by the crypto market’s bloodbath, which was triggered by tightened macroeconomic conditions.
FTX has received requests for assistance from many companies. “We’re starting to get a few more companies reaching out to us,” Bankman-Fried said.
Bankman-Fried saved Voyager, a cryptocurrency brokerage firm, through his crypto-trading company Alameda Research in June with a $200 million loan.
The CEO of FTX acknowledged that the goal of the bailouts were to end panic in crypto ecosystem and protect investors assets. He noted:
“Having trust with consumers that things will work as advertised is incredibly important and if broken is incredibly hard to get back.”
This revelation comes after Bankman Fried acknowledged that he was prepared to bail out jittery crypto miners who borrowed for the past two year to support expansion plans. Blockchain.News reported.
Unforeseen events like the invasion of Russia by Ukraine and the collapse of LUNA tokens and UST tokens has triggered a downtrend within the crypto market. Its value dropped to less that $1 trillion, from $3 trillion in November 2017.
Furthermore, Bitcoin (BTC’s value has fallen by at least 70% since November 2021, when it reached $69K.
Therefore, Bankman-Fried’s bailout plans are a welcome move in the crypto sector because they are reigniting the fire.
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