Prioritizing customers getting back their deposits means it is OK to do a “moderately bad” deal when rescuing troubled cryptocurrency companies, FTX founder and CEO Sam Bankman-Fried said on Tuesday.
See related article: What Sam Bankman-Fried thinks will happen with NFTs and crypto exchanges in 2022
Fast facts
- Speaking at the Bloomberg Crypto Summit, Bankman-Fried, who tried to bail out some of the ailing firms in the industry, said such investments were not necessarily about maximizing return on investment.
- Bankman-Fried said some of the cryptocurrency market crash can be attributed to “herd behavior” triggered by a tightening monetary policy.
- “The world believed that there is going to be easy money forever, and all numbers would keep going up except for the value of the dollar,” Bankman-Fried said.
- A signal changed, and prices across the board came crashing, he said, pointing out that this is what investing looks like during the “peak mania.”
- On crypto hedge fund Three Arrows Capital, which filed for bankruptcy, Bankman-Fried said “their trading was probably more like punting than arbitrage making,” clarifying that the firm’s position was not necessarily illiquid, but they just lost their money.
See related article: Sam Bankman-Fried agrees second bailout