When it comes to crypto, FTX head Sam Bankman-Fried has made a real name for himself. He runs one of the biggest, most popular digital currency trading platforms of all time, and only in his early 30s, he’s already a crypto billionaire.
Sam Bankman-Fried Is a Crypto Star
That’s why he felt it was up to him to bail out a bunch of companies when they were failing throughout this year’s massive bear market. Many companies have gone under, and firms ranging from Voyager Digital to the Celsius Network have been forced to declare bankruptcy or enter other means of protecting themselves as prices continue to sink.
Bankman-Fried sought to help many of these companies by granting them bailout money. He gave them the funds they would need to stay afloat and remain steady in what is clearly an unsteady market, but in a recent interview, he admits that the decision was sudden and emotional, and he doesn’t think all the results have been positive, describing them as “mixed” at best.
Our very explicit mandate that we sort of gave to the team of people working on this was, ‘Your goal is not to make a fortune… Your goal is to do okay deals. Your goal is for us to not get our faces ripped off.’
Thus far, more than $1 billion has been handed out to failing companies across the crypto landscape. Bankman-Fried continued his interview with the following discussion about how profitable the bailouts have been:
Mixed is basically the answer. Some of them are going to turn out to be profitable. Some of them won’t be… With Voyager, there’s $70 million there that we put in that I’m not sure we’re ever seeing again. We had to make snap judgment calls.
It appears Bankman-Fried acted on something that causes a lot of people to fail in the crypto space: fear. He saw that the space was going down and sought to take quick action to prevent this from happening, but as we learned in the Great Recession of 2008 and 2009, bailing companies out doesn’t necessarily help them… It just kind of delays their dissipation.
It Seems Bad Choices Were Made
Experts constantly talk about not having “fear of missing out” or FOMO (keyword: fear) when engaging in crypto trades, as this can result in poor decision making. It appears Bankman-Fried did not learn anything from these discussions and allowed his fear of crypto’s death to lead his judgement.
In addition, it’s likely he’s not helping himself in others other ways, starting with the fact that he’s donated millions of dollars to shady leftist politicians. It’s a liberal administration under the hand of Joe Biden that has contributed to the failed economic policies that are now hurting bitcoin and crypto, so why would keeping them in power and funding them more help the space?