Notorious crypto exchange, FTX’s CEO Sam Bankman-Fried revealed in an interview that the crypto winter was much needed to curb speculation about crypto investments.
According to Sam Bankman-Fried, the crypto market will face more impairment if Nasdaq falls below 25%, interest rates continue to hike and a two-and-a-half-year recession arrives.
He believes that a small part of the crypto market rout is yet to come, however, it will be manageable too.
However, Sam Bankman-Fried also said, “I think we’ve already seen the worst of it; there’s a little more to come, but it’s not very bad.” If this is true then the crypto market will have no more crypto winter state.
Sam Bankman-Fried said that the crypto winter will kick out those crypto investments made without the awareness of assets’ actual value. He says that kind of “ungrounded” thinking only works during periods of euphoria in the market.
FTX survived in extreme market conditions in some instances, which disrupted numerous platforms such as Voyager Digital, Celsius, Babel Finance, and Three Arrows Capital. The majority of these platforms went bankrupt and insolvent, locking millions of dollars in investor money in its treasury.
TerraUSD collapse has surged turbulence in the crypto market, whose adversary impacts also damaged other crypto platforms.
To fix the turmoil in the crypto market, FTX also provided capital aid to numerous disrupted platforms to prevent domino effects in interconnected platforms and protect investments.
Apart from this, FTX closed those deals which were neither catastrophic nor optimal. FTX also announced the acquisition deal of $240 million for BlockFi. This deal also includes the $400M rolling credit facility to BlockFi.
Also Read: FTX Proposes Joint Liquidity Offer to Voyager Customers
