Generous FTX Boss Series
FTX had recently bailed out BlockFi, another crypto exchange from its liquidity crunch, and helped the company strengthen its balance sheet and regain its strength with a $250 million line of credit. On the other hand, the exchange had also helped Voyager Digital, a crypto exchange, by providing $500 million in funding to the company last week through founder Almeda’s quantitative trading firm.
While it’s unclear whether FTX will be able to recoup the investments and whether the company’s aid will pay off in the long run, SBF said his company is “prepared to do a bad business here if it doesn’t.” it has to be done somehow to stabilize things.
However, he hinted that many exchanges will not come out of the current bearish situation, adding that apart from the main ones, there are many exchanges that operate outside of regulations and do not follow KYC rules. The FTX founder added that many companies providing crypto-related services are “secretly insolvent”.
“Some companies are fundamentally too far gone and it is not practical to bail them out for reasons such as a large hole in the balance sheet, regulatory issues or because there is not much business left to save. “said the CEO of FTX.
SBF also backed Tether saying the company can be trusted. In light of the fact that many stablecoin issuers receive heat from the crypto community, Tether’s lack of transparency has drawn criticism.
“I think the really bearish views on Tether are wrong…I don’t think there’s any evidence to back them up,” Bankman-Fried added.