FTX still owns few billion to rescue struggling crypto companies
The chief executive officer of FTX crypto exchange confirmed that the financial health of FTX exchange is still better to rescue other leading crypto companies.
FTX is a top-ranked crypto exchange. Due to better user-friendly services, the exchange is standing at 2rank, in terms of 24 hours trade volume on this platform. FTX has its hand in multiple categories of the crypto industry like blockchain Gaming, Web3, and also in crypto token project Solana.
Recently Sam Bankman-Fried, CEO of FTX crypto exchange, shared some information regarding the internal financial health and efforts of FTX exchange with Reuters.
Bankman said that the exchange is still holding a few billion as a reserved fund to rescue the other crypto firms under critical situations. Indeed exchange secured $2 billion of funds from FTX Ventures, a subsidiary of FTX exchange that manages investment-related works.
FTX CEO admitted that each bailout has “become more expensive” than the prior ones. He said that FTX could still deploy a couple billion for “one single event” if that is “all that matters.” However, it was not his preferred strategy.
Bankman also explained that getting the trust of customers & ensuring the security of the funds with the protection of their interests & stopping the domino effect are the main part of the backup bailout strategy.
FTX executive said that the current downfall in the crypto market was worse and he never expected such a significant downfall would take place. He also revealed that even small crypto companies reached out to the FTX exchange to get help in this situation.
Earlier in an interview with CNN, FTX’s CEO explained which crypto firms should be rescued as a priority in this industry.
Bankman explained:
“The key type of players we are looking for to extend credit to are the ones that build the good businesses, ones that have customers need protecting, where we’re trying to stop engaging to spread to the ecosystem, and where there is a long-term sustainable pathway forward.”
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