FTX left with ‘few billion’ to support the industry

The US Federal Reserve has continued to increase the interest rates as the global economy has seen rising problems. The changes on the geopolitical level have had impacts on the market as the economies have continued to suffer. These changes haven’t let the market see a rise while it has continued to lower in value. Crypto exchanges like FTX have also been facing problems amid the bearish market. The speedy inflation in the US market while sanctions on Russia and bans in China have been some of the leading impacts on the market.

FTX, one of the leading exchanges on the global level, has continued to fight the problems. It has continued to help those companies that need capital in turbulent times. But now, it has also raised alarms as its head Sam Bankman-Fired has said that there is little left to support the industry.

Here is a brief overview of Sam Bankman’s statement and how the crypto market is facing an emergency.

Bearish industry and crypto exchanges

The increased liquidity has forced many crypto companies to look for bailout packages from bigger names. One of these is FTX, which has continued to extend a supporting hand to companies that saw tremendous losses in value. Leading companies like BlockFi, Voyager, etc., have asked FTX for support.

 Sam Bankman-Fried talked with Reuters, discussing his support for other companies and how far he can extend a supporting hand. He clarified the criteria for selecting the companies that can be given a bailout while also talking about the limited funds left.

Thirty-year-old head of crypto exchange FTX, Sam Bankman-Fried, has fulfilled his promise to help soon-to-be bankrupt crypto companies. His company initially extended help of $250 million while it was later increased to $400 million. FTX also gave support to Voyager, which was about $200 million.

According to the company’s official sources, a capital venture fund of $2 billion has been reserved for saving companies facing trouble. According to Bankman-Fried, the bailout was becoming expensive for the company as the problems continued to increase.

Sam Bankman’s statement about FTX

According to FTX head Sam Bankman-Fried, they are facing problems with funds, but there is still a considerable amount left to help companies. He said they could still employ a couple of billion dollars to serve those in need, but it will restrain them in the coming days. He said it wouldn’t be a good strategy to continue like this. Instead, they would prefer to go for building investor trust. They would do so by building investor interest in the market to prevent the domino effect that has affected it.

He said that the situation has gotten worse than expected, and they have seen various big and small companies seeking help. According to Sam, some of their considerations while they extend financial help include reliability, customer protection, work on the spread of the ecosystem, etc.

There were rumors that FTX might also extend its support to Bitcoin miners, but Sam denied it. He said that it doesn’t have any support for the market nor brings the investors any good. He said mining hasn’t been affected by liquidity and can survive this situation.  

Conclusion

FTX has been one of the leading names that have saved many companies from bankruptcy. According to its CEO Sam Bankman-Fried, they have saved many companies, but support might restrain them. He said there are ‘few billions’ left to support the market. He and his company have outlined clear criteria for selecting companies for a bailout.