The withdrawal of capital from the cryptocurrency market seems to be over, threatening the stability of the firms that once relied on the high prices of bitcoin or ethereum. It is easy to find recent examples of companies with liquidity problems or bankruptcies, however, it is difficult to find success stories.
The exception is , founder of the ‘crypto’ exchange platform FTX. His company is valued at 32,000 million dollars and his figure is equal to that of Warren Buffett. Although in this case, SBF, as it is also known, stands out for its role as an investor in digital assets.
The thirtysomething billionaire has been named by Fortune as “the most powerful in crypto” and SBF has shared some of the keys to his success in an interview with CNBC. Among them, the entrepreneur highlights that he has always maintained high liquidity and moderate costs. And in addition, he points out the ability to adapt that FTX has as a private company that requires fewer procedures to change its strategy and make decisions.
Another of the platform’s strengths is its customer base. According to Bankman-Fried in the same medium, operators who use FTX make transactions of a minimum of 100,000 dollars. These are professional, corporate investors and a lower presence of retail users. And the latter makes it less dependent on consumer sentiment and more resilient in bear markets. In addition to the client profile, FTX has managed to increase its market share in the last year.
The exchange is profitable and last year it entered 1,000 million dollars, a figure similar to the one it expects to close this 2022. SBF says that its philosophy is not , but to achieve sustainable evolution. “We have contracted less than others, but we have also contained costs better,” he gives as an example.
FTX has also grown inorganically by buying other companies in Switzerland, Cyprus, Germany, Gibraltar, Singapore, Australia, Turkey or the United Arab Emirates. The entrepreneur points to the agility they have when it comes to closing operations, as they do not have to depend on the operations of listed companies.
The platform is based in Nassau, the capital of the Bahamas, where SBF also lives. His company was co-founded in 2019 with Gary Wang.
No UK license
This Monday, the British regulator has warned consumers that FTX operates without a license in the country. The company has a subsidiary in the United States and from the international headquarters it provides services to the rest of the regions. The financial authority, the Financial Conduct Authority (FCA), has issued a statement in which it warns that it does not have its authorization to provide financial services.
For this reason, FTX is not exempt from controversy and its case reawakens on this type of platform. “You will not be protected under our structure, so if things go wrong, it is unlikely that you will get your money back,” the FCA informs consumers.
Facebook Comments
Disqus