I, born in the 1990s, with a net worth of US$22.5 billion. I want to buy the bottom of in the bear market in the currency circle.
chain new (ID: ChinaBlockchainNews) Original
Author | Fang Qinyu
When the currency price in the crypto market fell and leveraged leveraged , some " White Knight " were also taking action quietly.
html After the crypto market plummeted in June, Sam Bankman-Fried, a post-90s rich man with a net worth of US$22.5 billion, announced that he would save some projects in crisis by providing loans and stakes.
In SBF's words, "Even if intervention makes us lose some money, we must stop the crisis from spreading."
When an unusual crisis occurs in the financial market, the one who takes the initiative to rescue the market is often central bank . Now, SBF's move is known as the "city of the currency circle".
As of press time, SBF has intervened in crypto asset broker Voyager Digital and cryptocurrency lender BlockFi through all its companies, Alameda Research and FTX.
Additionally, in May, SBF claimed to spend billions of dollars on shares in other companies.
Legendary Explosive Head's entrepreneurial expansion history
SBF is used to be called "Explosive Head" in the currency circle because of its wild hair.
He entered the cryptocurrency industry in 2017, accumulated tens of billions of crypto assets in four years, and was on the 400 richest man list in the United States in October 2021 - at the time he was only 29 years old, with a net wealth of about US$22.5 billion, becoming the richest person under the age of 30 in the world.
SBF's main tag is the founder of the FTX trading platform.
FTX was established in 2019 and received investment from Binance, the world's largest exchange. It is a platform focusing on professional trading tools such as derivatives. Its current valuation has reached US$32 billion.
Before entering the crypto industry, SBF, who graduated from MIT , worked as a trader at Jane Street, a well-known securities trading company on Wall Street. After leaving Jane Street, SBF established Alameda Research, a secondary market quantitative trading startup, to provide liquidity to the leading cryptocurrency trading platforms.
During the bear market from 2018 to 2019, Alameda Research became the largest liquidity supplier in the crypto market due to its excellent performance. Therefore, it was noticed by Binance founder CZ, so it invested in FTX, the second company founded by SBF, which is now the fourth largest crypto digital currency exchange in the world.
Alameda Research and FTX projects quickly accumulated wealth for SBF, and SBF quickly embarked on the road of expansion.
During the DeFi explosion in 2020, as a supporter of Solana's public chain, SBF launched Serum DEX, a decentralized trading platform based on Solana's public chain, in order to compete with Uniswap, the largest DEX platform at that time.
Serum DEX was launched on August 30 of the same year. It received investment from Jump Trading, the world's top high-frequency trading company, just one week later. Almost at the same time, FTX announced the acquisition of cryptocurrency asset management tool Blockfolio for US$150 million, becoming the sixth largest acquisition in cryptocurrency history. While the appearance of
Serum DEX, SushiSwap, a phenomenal DEX platform that once absorbed more than half of Uniswap's liquidity, also appeared. Later, because Sushiswap founder Chef Nomi ran away, SushiSwap time lock management control permission was unexpectedly thrown to SBF.
In August 2021, FTX under the control of SBF initiated the acquisition of LedgerX, a digital currency futures and options exchange and clearing house regulated by US Commodity Futures Trading Commission (CFTCh). The acquisition was completed at the end of that year and was renamed FTX US Derivatives.
In May 2022, according to a public 13D document from the Securities and Exchange Commission (SEC), SBF spent about $648 million to purchase 56 million shares of Robinhood (HOOD) shares, with a shareholding ratio of 7.6%.
It is rumored that FTX is considering internally how to acquire the US stock broker, but SBF said that "there is no active M&A dialogue with Robinhood yet."
Is it a rescue or buy at the bottom? These expansions of
cannot satisfy SBF's appetite.
SBF claims that he is a practitioner of altruism and participates in charitable and political elections with practical actions.
In 2020, he established the "future forward USA" and donated more than $5 million to Biden and its support groups; in April this year, FTX announced that it would name the NBA Miami Heat home stadium for $135 million.
In June 2022, Ethereum plummeted, and st ETH was sold out at a discount by institutions. Its essence is that Sanjian Capital, the largest lender in the market, exploded its position. In this plunge, only SBF-dominated FTX and Alameda Research reached out to the market.
According to The Block, FTX, Derbit, and BitMEX were also affected by the explosion of Sanjian Capital, and liquidated Sanjian Capital's position .
However, SBF claims that FTX was not affected during this storm, and Sanjian Capital did not default on FTX, but SBF believes it is the responsibility to intervene and stop the crisis from spreading.
He did do that.
On June 21, crypto lending platform BlockFi announced that it had obtained a revolving credit line of US$250 million on the FTX Exchange. BlockFi is one of the institutions that liquidate the mortgage positions of Sanjian Capital. During the explosion of Sanjian Capital, there are rumors that BlockFi is rumored to be falling down with Sanjian Capital.
Immediately afterwards, on June 26, some media said that SBF is negotiating the acquisition of BlockFi.
Also received by the SBF olive branch was crypto asset broker Voyager Digital. The broker issued a loan default notice to Sanjian Capital on June 27, on the grounds that it failed to pay more than $666 million in loans as required, and then reduced the daily withdrawal limit from $25,000 to $10,000, and the daily withdrawal number was limited to 20 times.
On June 17, Alameda Research, led by SBF, acquired 14.9 million shares of Voyager Digital, and purchased it at an average price of US$2.34. After the acquisition was completed, SBF held 11.56% of Voyager Digital and became the largest shareholder.
Blockworks researcher Ryan Swanson analyzed that SBF's next step is likely to be acquiring Voyager, which will be one of SBF's cheapest acquisitions. Similar operations were performed on Japanese compliance exchange Liquid Global.
In August 2021, Liquid Global's hot wallet was hacked and more than $90 million of assets were stolen. FTX generously loaned about $120 million to Liquid Global. In February 2022, FTX announced the acquisition of Liquid's parent company Quoine to provide products and services to Japanese customers.
In this way, SBF's "rescue" measures seem to be just a repeat of Liquid's acquisition, taking advantage of the crisis created by Sanjian Capital to buy assets at the bottom.
It is undeniable that SBF used real money to rescue several projects that were dragged down by Sanjiang Capital, which played a role in stabilizing the market. While being altruistic, it also did selfishness. Similar phenomena have occurred in history. In 1907, an economic panic broke out in the United States. At that time, the Federal Reserve had not yet been born. The founder of the Morgan Group, known as the world's creditor, John Pierpont Morgan , took action against Mooresley (the main creditor of Tennessee Mining and Ironmaking Company), thus avoiding the collapse of the New York stock market and creating a miracle of private bankers organizing forces to deal with a national financial crisis. In fact, Morgan bought an asset with a potential value of at least $1 billion at an extremely low price of $45 million.
However, it is worth noting that SBF himself mentioned that most of the assets he holds lack liquidity. In the context of the current bear market, the market black swan is frequently occurring. Can SBF buy at the bottom succeed?
This article is original by Lianxin (ID: ChinaBlockchainNews), and reprinting is prohibited without authorization.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-