FTX’s Sam Bankman-Fried Tries to Savage the Crypto Ecosystem

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Cryptocurrency exchange, FTX, and its United States subdivision, FTX.US are still considering raising more funds even after their ongoing high-profile crypto shopping. Both entities have set new funding targets to attain, a move that will help establish their foothold in today’s crypto ecosystem.

According to a Wednesday report, The CEO of FTX, Sam Bankman-Fried who had recently announced his intentions to give out a large percentage of his crypto earnings, has been having discussions on how to raise a fund similar to the one secured in January.

In January, the crypto exchange closed a funding round that generated $400 million bringing FTX’s valuation to $32 billion. 

Its US counterpart also realized the same amount in another round which raised its valuation to $8 billion. With these funds, both crypto firms acquired several enterprises, especially those experiencing financial crises due to the market downtrend.

Shopping Spree for the FTX Brand

Crypto lender, BlockFi was one of such outfits, FTX US expressed interest in acquiring the lender valued at $680 million. Sam Bankman-Fried also purchased a 7.6% stake in Robinhood, a retail investment application, with discussions about acquiring the platform succeeding the transaction.

Also, as part of its strategy to support stock trading, crypto derivatives exchange, and non-fungible tokens (NFT), FTX began to search for shares from brokerage firms to acquire. The CEO tried saving Celsius, the troubled crypto lender but decided against it before the deal was completed. 

According to reports, FTX withdrew from its plan because of the distasteful state of the crypto firm. At that time, Celsius could not account for $2 billion which was missing from its balance sheet. Bankman-Fried as explained by the report had it tough dealing with Celsius.

The crypto winter with all of the turmoil it created has not deterred FTX. Sam Bankman-Fried said that he remains unperturbed even if he loses money while trying to bail out the promising firms building the crypto infrastructure in this prevalent extreme market condition.

He believes his gesture is geared toward healing the entire crypto ecosystem. During the Bloomberg Crypto Summit which was held in New York on Tuesday, he indicated that “It’s OK to do a deal that is moderately bad in bailing out a place.”

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