Every day we receive reports of various crypto companies failing amid the crypto winter. However, the CEO of FTX stated that this crypto exchange is out of danger thanks to additional investment. They are supposed to help keep it afloat amid a sharp decline in the value of major cryptocurrencies.
Details
Recently, Sam Bankman-Fried gave an extensive interview to Axios, where he spoke about the prospects for developing the crypto business in a crisis and what awaits FTX shortly.
According to him, the exchange has recently spent a lot of time looking for additional investors, which made it possible to obtain extra profit to stabilize the situation.
Thanks to investors, the company’s earnings this year are about the same as last year, despite the general crisis in the crypto empire. However, Sam Bankman-Fried notes that losses cannot be avoided. He is ready to lose a little during the “rescue” of Voyager Digital since the $ 75 million provided to the crypto broker relates to clients’ assets and may be lost.
The money earned will be used to develop the business and develop new services, attracting even more customers. It will allow the development of the existing economy in the future.
Today it looks forward to working with the IEX platform as a new clearing partner. It will make it easier to trade securities for additional profit.
The billionaire claims that in the first weeks of the crypto winter, he and his company received many calls from crypto enthusiasts and investors who feared possible problems amid a sharp decline in asset values. These calls have stopped since no major collapse, and the situation is gradually normalizing; bitcoins and other cryptocurrencies show a slight increase.
In addition, the top manager hopes that shortly the US authorities will create new regulatory systems for the crypto industry and thereby help the situation stabilize faster. Recall that some experts say that it is the activities of the government of the United States of America that are partially to blame for the onset of the crypto winter due to the severely strict control over the activities of crypto companies.
In July, FTX US issued a 400 million USD revolving loan to BlockFi with a buy option for 240 million USD. Earlier, the parties agreed on a revolving credit line for 250 million USD.
Why is the FTX example so important?
Today, many crypto enthusiasts are cut off by the current state of affairs and are seriously considering stopping working in this direction. It leads to an even more difficult position in the market. However, positive examples of a crypto business that has survived in these conditions and can also develop can increase faith in the entire industry.
In addition, FTX shows how effective management can overcome a crisis. Attracting additional investment is the best solution for any business, especially during an emergency. If you put all processes on pause and issue rash loans, your business will most likely fail.
Binance offers the same system. According to the company’s management, a decrease in the value of assets is a reason to buy more and not to sell, fire employees, and take huge loans without understanding how you will give them back.