Sam Bankman-Fried Out to win over the entire cryptom market, says Early FTX-Backer
Sam Bankman-Fried Out to win over the entire cryptom market, says Early FTX-Backer
- In contrast to competitors, FTX made careful setting decisions and focused on remaining profitable
- No other stock exchange or no other financial institution is able to incorporate and curb losses in the crypto industry, said McCann
The risk capital company Race Capital was an early phase investor in the crypto-experienced FTX and participated in their 8 million Dollar Seed round 2018.
While most companies have announced layoffs and cost reductions, FTX has been in an ambitious deal of rush in the past two months. The stock exchange based on the Bahamas recently approved the takeover of Bitvo and embed with extended blockfi a credit line of 250 million US dollar, and Alameda Research distributed Voyager $ 500 million.
According to reports, FTX also intends to take over Robinhood after CEO Sam Bankman-Fried personally acquired a share of 7.6 % at the investment app last month. He denied these claims."Sam has an impressive character," said Chris McCann, partner at Race Capital, Blockworks in an interview.
"We didn't know how big this thing might be. It probably surprised us on the positive side," he said about Race's early excitement about the investment in FTX.
"We thought he had a pretty good chance of winning the entire derivative market. I didn't know that he would probably win the entire cryptom market and maybe even beyond because he is now trying to pursue general stocks and finances, so it's really impressive."
mccann shared races First deal-memo emphasizes early possibilities in ftx In the early days of Bankman-Fried's idea to create an exchange for crypto futures and derivatives. The memo shows that FTX increased the daily trading volume in less than two weeks in 2019 from $ 50 million to $ 150 million. Now it is traded approximately 2 billion dollars One day on average.
"Sam has always been a very aggressive, direct and assertive type," said McCann. "He is not afraid of making very brave, decisions if nobody else wants. I know that we are a very biased party here because we are investors in FTX. But I also cannot imagine any other stock exchanges or financial institutions that would be able to do this."
He referred to extensive layoffs at Coinbase, Binance in a "difficult situation" and Huobi and Okx, who concentrate more on Asia than reasons why they are unable to make large fluctuations like FTX.
"So [Bankman-Fried] is one of the few that are left, and I think he will have all the advantages of being there," said McCann.
How FTX helps to contain the infection
The trading platform seems to have been careful in an important aspect: the attitude. In contrast to other crypto companies that grew too quickly without focusing on becoming profitable, FTX was careful.
While stock exchanges such as Coinbase and Binance had More than 4,000 employees The number of employees from FTX was far less. In June, the workforce was only 300, announced Bankman-Fried in A Twitter .
"You are just extremely efficient. And you always have set it up," said McCann. He believes that other companies had the feeling that they had to justify their high donations by hiring more employees. "The sad reality is - the more people they hire, the less efficient they become," he said, adding that the personnel costs generally pose the greatest costs for every company.
"You were basically profitable from the first day - and not just a bit, but extreme - whatever she brought into this superior position on the market."
positive for VCS in a bear market
Most risk capital providers are looking for new shops in a market depastry, since the ratings are probably low and expectations are reset. At the moment, the fear of investors is great because the crypto prices remain low and companies like Celsius, Three Arrows Capital and Blockfi stir up fears of liquidity crises. But McCann says that the worst times are usually the best for risk investment.
"This is not the first time, nor is this the worst," said McCann and referred to the Krypto-Crash from 2018, as concerns, whether people would use blockchain-based technology and whether it would be worthwhile, projects, projects to build in this area.
"We had no countries, governments, financial institutions, companies - nobody was really interested in all of these things. And so it was a much worse time at the time than today," he said. "This is more of a macroeconomic situation that all investment classes, not just crypto, pulled down."
But for most people who work long enough in the industry, he believes that the current market depression is not a surprise. "To be honest, it was a bit too extreme in the other direction five to six months ago, so a lot has to be corrected by this excess," said McCann.
"I can't guarantee this, but usually we find the most interesting way of society in one of these periods."
In addition to FTX, Race Capital also belonged to Solana First supporter in 2018. Since the industry was visibly shaken and many investors withdrawn at the last minute Having the network has not made an official announcement about its seed round. The amount that Solana wanted to raise, compared to the amount they actually collected, means that there was a much lower number of people who actually did it.
Race Capital hopes to find a valuable project again this time, since the environment tends to be less competitive.
"Now you really separate the people who really do this, from the people who are more tourists in the room," said McCann. "The entrepreneurs who now decide to build a company are, despite everything that happens, the people who really believe in this stuff."
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The contribution Sam Bankman-Fried Out to Win Whole Crypto Market, says early FTX-Backer, is not a financial advice.