FTX (cryptocurrency exchange) expressed its desire to invest in & help the struggling companies in the crypto and digital asset industry. According to Bankman Fried (head of FTX), the company has a few billion dollars at hand just for the purpose of keeping the industry stable!
It is the decisions like this that have made Bankman a kind of white knight for the crypto enthusiasts, as he has been helping the digital asset platforms to stay afloat after the crash in cryptocurrencies. With BTC already down by 70% from its all times high, a lot of digital asset & crypto companies have been struggling to stay afloat.
Recently Bankman revealed in an interview that a few more companies have reached out to the FTX for help. According to him, the firms that reached out are facing some financial difficulties, but they are not in a dire situation. However, one thing is for certain, and that is the eventual fall of small crypto exchanges!
Alameda Research is the crypto trading firm of Bankman, through which he has been lending money to different crypto firms. Recently, he gave $200 million along with a stablecoin credit facility to Voyager Digital (crypto lender). Furthermore, he also provided a facility of bitcoin to help the company from its exposure to the Three Arrows Capital (crypto hedge fund).
FTX also provided a $250 million (USD) credit facility to another crypto lender BlockFi in June. And just recently, a deal was announced which gave rights to the FTX to buy the company!
According to Bankman, the main goal behind the bailout of these crypto exchanges and firms is to stop the deterioration of the crypto ecosystem and to protect the customer's assets.
According to estimates, the net worth of Bankman-Fried is $24 billion (USD), but according to some, this figure may have been cut in half after the recent crypto crash.
But even if half of that figure is true, then that's an indication that Mr. Bankman is in good condition to bail out quite a few crypto exchanges and firms from bankruptcy. However, how far Mr. Bankman is willing to go with his own money is still yet to be seen!