news hardware This man wants to save the crypto industry despite Bitcoin’s demise
As we witness the carnage of certain cryptocurrency giants following the downtrend of all virtual currencies in the market, billionaire Sam Bankman-Fried has taken it into his head to rescue certain crypto soldiers in distress. And why not expand your empire along the way…
FTX to save Voyager Digital customers
Since the start of the Bitcoin decline, the entire market has been dragged down, including companies in the industry. Dropping from €60,000 to €20,000, Bitcoin caused a drain on the coffers of several crypto companies.
Because of this, the Voyager Digital exchange platform is in a delicate situation that is jeopardizing the savings of its customers. In fact, customers will no longer have access to their systems for a few weeks.
This bankruptcy brings Voyager Digital to the brink of bankruptcy… Nevertheless, the CEO of the second largest cryptocurrency platform by volume wants to help Voyager Digital’s customers.
FTX CEO Sam Bankman-Fried has reportedly made a proposal to help Voyager Digital customers whose funds have been frozen for several weeks. To do this, the giant is offering to pay off the debt 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 Voyager Digital name and various intellectual property rights.
This promotion would allow Sam Bankman-Fried to expand his platform’s client base, as the unlocked cryptos will be accessible in early access, not on Voyager Digital, but on FTX (when opening an account).
“Customers are not required to register with FTX and this would be entirely voluntary. FTX also does not require a minimum number of customers who should agree to participate. Any customer not wishing to register with FTX would retain all of their rights and entitlements in the insolvency proceedings but would not have early access to a distribution of their claim by FTX. explains FTX in a press release.
So the initiative is not entirely altruistic, billionaire Sam Bankman-Fried, known as SBF, clearly communicated his intentions at the beginning of the year: to expand his empire in the industry despite the crypto winter.
FTX Wants to Build Crypto Empire: BlockFI, Bithumb…
After proposing to acquire cryptocurrency platform Blockfi for $240 million, the world’s 60th billionaire believes he has a new opportunity.
According to Bloomberg magazine, FTX is in intense negotiations with a competing crypto exchange: Bithumb. Negotiations to acquire the platform would take “several months,” but nothing has been done at the moment.
Bithumb is a cryptocurrency exchange founded in 2014. The famous company is credited with pioneering the industry but is facing financial difficulties following the crash of the LUNA cryptocurrency last May.
This “mercato” of cryptos is not yet in its infancy… Since the beginning of the year, FTX has already acquired companies in the industry such as Liquid and Bitvo.
The fall in 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 receives bad publicity and users lose trust. Still, the bear market (bear market in crypto) is not only making people unhappy. Sam Bankman-Fried intends to use the difficulties of certain companies in the crypto sector to expand his empire. The CEO of FTX understands this well and therefore believes that his bailout strategy involves not only struggling companies but the entire sector.