Sam Bankman-Fried, Previously Viewed as a Cryptocurrency Prodigy, Falls with FTX’s Bankruptcy
FTX bankruptcy had an impact on Sam Bankman-Fried, also known by the abbreviation SBF, was a shaggy, sweatshirt-clad bitcoin billionaire. He quickly rose to prominence as one of the industry’s most recognizable and well-liked figures.
He was a Noah’s Ark for struggling businesses, politically active, prepared to contribute his riches to charities, and friendly to the media, but he too fell prey to the brutal crypto market. In the midst of a protracted Bear Market, an even more brutal cosmos.
First, there is the rumor that the majority of the platform’s cash flow, FTX, is made up of its own FTT tokens, increasing the danger of insolvency in the event of a downturn. Then, the liquidation of all of its FTT tokens was disclosed in a tweet from its major rival and CEO of the leading Binance, Changpeng Zhao.
Fall of FTX
The price of FTT then plummets because to the panic, or FUD (fear, uncertainty, and doubt) in technical terms. Last but not least, the announcement of a deal to sell FTX to Binance, or to put it another way, SBF’s utter defeat and the disastrous conclusion to a three-year chess match with Changpeng Zhao
Later, in a letter to investors, he apologized for not performing better. “This proves that no one is too large to fail,” Ledger’s boss wrote on Twitter. On the Bloomberg Billionaires list earlier this week, Sam Bankman- Fried and Changpeng Zhao were still tied for first place.
The former had left about $8 billion in wealth in cryptocurrencies since the start of 2022. While the latter had left nearly $80 billion. But both had reached an emotional $16 billion. SBF was removed from the chart in less than a day. Its wealth was destroyed by 94% in a single day, following the trajectory of the FTT token (-77%).
SBF had recently established itself as the savior of a sector of the economy-chaotic industry. a unique position in this industry where the rule of the jungle applies. With the help of a $250 million loan, the 30-year-old prevented BlockFi and Voyager Digital from going bankrupt. Voyager Digital was later acquired by the American division of FTX.US.
This wealthy son of an academic is frequently regarded as a fervent advocate of the cryptocurrency industry. The businessman, who relocated his headquarters to the tax-friendly Bahamas, also said that he would contribute nearly all of his riches to causes that were dear to his heart, including the protection of animals or the effort to stop global warming.
Public and Media
With the demise of SBF, the cryptocurrency business loses both a pillar and a counterweight. Changpeng Zhao will solidify his position as the sector’s main figure and focus even more on the exchanges. Beyond providing financial assistance to the industry. The founder of FTX has also served as a prominent voice in the media. Spending at least $400 million to sponsor teams in sports, including the Mercedes F1 team and the Miami Heat’s NBA arena, which was renamed FTX Arena.
Sam Bankman-Fried and Eddie Cue, the head of Apple, are seated in their startup (Autograph). SBF, the long arm? Bankman-Fried, who is at ease speaking to both politicians and media, has been interviewed by American lawmakers numerous times, particularly when it comes to the topic of regulating digital assets.
