Almost the entire fortune disappeared into thin air
Crypto billionaire loses 15 billion in one day
Sam Bankman-Fried acted as the savior of the crypto industry over the summer. Now the American billionaire’s company itself had to be saved.
Sam Bankman-Fried loses 15 billion in one day with his crypto exchange FTX.
30-year-old Sam Bankman-Fried has been one of the stars in the crypto sky for years. But the multibillionaire’s flight ended abruptly on Tuesday. His fortune practically evaporated in a single day. Bankman-Fried lost around $15 billion on its FTX crypto exchange, according to the Bloomberg Billionaires Index. The index maintains a daily updated ranking of the richest people in the world.
FTX, the fourth largest crypto exchange in the world, is facing massive liquidity problems. Falling investor confidence has only exacerbated the problems in recent days.
“All assets are covered 1:1”
One by one they took their money off the platform and brought it to safety. That plunged FTX and its founder and CEO Sam Bankman-Fried deeper and deeper into misery — and sent the entire crypto industry into a tailspin on Tuesday. The most important cryptocurrency, Bitcoin itself, temporarily fell by more than 17 percent to $17,744 on Tuesday – the lowest level in two years.
In order to stabilize the crypto market, FTX finally had to be saved by the largest crypto exchange Binance. Bankman Frieds lost most of his $16 billion fortune. Bankman-Fried tried to reassure investors Tuesday night. “All assets are covered 1:1,” he assured on Twitter.
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From the savior to the needy
Bankman-Frieds founded FTX three and a half years ago. In the summer, the young American declared himself the savior of the industry and, for example, saved the digital currency lender BlockFi. Bankman-Fried had less success in his attempt to save the Voyager Digital cryptobank, which failed. Now he needed help himself.
The planned takeover of FTX by Binance could not really calm the markets. Bitocin rallied as high as $18,313 by Wednesday morning before falling back to $17,724 at 10:50 a.m.
“The announcement of the spectacular takeover has now raised new fears of major turbulence,” writes analyst Timo Emden of the events, adding that “the continued tension in the industry clearly does not end at the larger addresses either.” This causes investors to react “extremely allergic”.
The takeover may still fail
Things are not so pessimistic at Swissquote online bank. Analyst Ipek Ozkardeskaya believes that while “problems” with FTX have once again shaken confidence and triggered a sector-wide selloff. However, the “contagion risk” from the shocks around FTX remains limited. The sector has already overcome previous and similar crises.
Many observers warn that the takeover may still fail. As fast as things have been, it is entirely possible that Binance will back down, the market says. (smt/SDA)
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