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If anyone can say they know the ins and outs of crypto, it’s 29-year-old billionaire founder of the FTX crypto exchange, Sam Bankman-Fried.
Not only has he amassed an impressive personal net worth by being at the forefront of crypto trends, he has also made FTX one of the fastest growing crypto platforms through one-of-a-kind partnerships.
First, there was the very first crypto deal with a major US sports team locking down the naming rights to the Miami Heat arena. Then there was the $ 210 million deal to rename the TSM esports brand to TSM-FTX. Now, FTX is signing another branded deal with Major League Baseball to outfit referees with FTX branded patches in the coming season.
All transactions are part of the same mission and let’s bet the tendency for people to get into crypto trading is here to stay and Bankman-Fried is confident that clients will stay with FTX over other options.
“Over the next two months, I’d be surprised if there wasn’t at least one more thing to come out,” he told Yahoo Finance Live on Thursday.
Part of Bankman-Fried’s confidence in the rebounding crypto market after its intense selloff that saw bitcoin lose nearly 50% of its value since its all-time high in April stems from an expected flow of money more institutional flowing in space and as he sees it, a drop in more speculative bets.
“Institutional money is always planning to come in. It’s going to take months, years, you know, it’s a lot of cautious and slow institutions making decisions over a decade about what to do with their businesses, ” he said.
FTX Sam Bankman – Fried
On top of that, Bankman-Fried said he doesn’t see as much potential for the riskier trades that have been done on borrowed money, or a margin, to be liquidated now as he has seen. at the start of the May sell-off.
“The potential for these to bring things down, there’s a lot less now. Open interest is down a lot, a lot of people who could be liquidated have been. There is a lot less foam out there. the market, ”he said. , highlighting the decline in crypto borrowing costs and the decline in Bitcoin futures. “While this is not a bullish sentiment, it is a sign that people are no longer holding net risk long positions.”
The story continues
That said, the rate of adoption of crypto among institutions may have taken a hit that could delay the influx of funds as quickly as they would have had without the recent big collapse in prices. As Mike Novogratz, another crypto billionaire and CEO of Galaxy Digital, told Yahoo Finance earlier this month, institutions are going to play a critical role in continuing the uptrend.
“We need institutions. They own all the money, he said.
Aside from an increase in institutional adoption or a potential Elon Musk tweet, as Bankman-Fried joked, other catalysts that could drive bitcoin up include governments following the move to El Salvador to adopt bitcoin as legal tender, or potential regulations around some of the gray areas in crypto. .
Zack Guzman is a presenter for Yahoo Finance Live as well as a senior writer covering entrepreneurship, crypto, cannabis, startups and breaking news at Yahoo Finance. Follow him on Twitter @zGuz.
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