The “core driver” of the current crypto downturn, according to the FTX CEO, is the Federal Reserve’s tightening fiscal policy. Sam Bankman-Fried, the billionaire founder and CEO of FTX, claimed his exchange had a “responsibility” to bail out struggling crypto firms in times of crisis.
Bankman-Fried believes that assisting one another in these difficult times would be beneficial to the industry in the long run. He said:
“I do feel like we have a responsibility to seriously consider stepping in, even if it is at a loss to ourselves, to stem contagion.”
FTX’s acquisition of the Japanese Exchange Liquid, according to the 30-year-old millionaire, is one way the company is assisting failing businesses. Last year, when hackers attacked a Japanese crypto exchange and stole roughly $100 million in cryptocurrencies, FTX stepped in to salvage the company with USD 120 million in funding. It declared soon after that it wanted to buy the exchange.
The acts of FTX could be interpreted as part of a larger strategy to grow into other markets. For quite some time, FTX has been increasing its reach. Bitvo, a trading platform based in Canada, was recently purchased by the exchange.
Bankman-Fried told NPR this weekend of the current crypto crisis, “I do feel like we have a responsibility to seriously consider stepping in, even if it is at a loss to ourselves, to stem contagion.” He went on to say, “Even if we weren’t the ones who caused it, or weren’t involved in it. I think that’s what’s healthy for the ecosystem, and I want to do what can help it grow and thrive.”
The crypto market is experiencing one of its most severe crashes in history, and the FTX CEO argues that the Federal Reserve is to blame for the precipitous drop in cryptocurrency prices. Risk perceptions have shifted as a result of the Fed’s aggressive interest rate hikes to battle high inflation, according to Bankman-Fried. Failing enterprises, on the other hand, are easy targets for the young billionaire.
Bitcoin’s price dipped below $18,000 over the weekend, much below its 2017 high. The initial cryptocurrency has recovered some of its value, but it remains less than half of what it was at the end of last year.
FTT, FTX’s native token, was trading at $25.18 at press time, up 7% in the prior 24 hours.
Image Credit: Shutterstock
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
