why would the worst be yet to come?

While 2021 was a great year for cryptos, 2022 is a disaster. And Bitcoin is on the front line. In the last quarter, the value of BTC had crossed the $60,000 mark, but today it is struggling not to fall below $20,000.

Among the events that have contributed to this cryptocurrency crash are the collapse of Terra, and, more recently, problems with the Celsius lending platform. The question that many people are asking today is: is the worst over? And unfortunately, according to a recent article published by Forbes, this is not the case.

The American media spoke with Sam Bankman-Fried, the CEO and founder of the FTX platform, and one of the most influential people in the crypto ecosystem, with 20.5 billion dollars. And according to this, there are currently “third tier” exchanges that are already secretly insolvent. Thus, in the short term, we could still witness the collapse of certain exchanges.

According to Forbes, Sam Bankman-Fried would be concerned that when crypto values ​​rose, exchanges offered very generous returns for deposits, in order to attract as many customers as possible. And if this practice worked during the uptrend, it turns to disaster today.

Some platforms would be unsaveable

The boss of FTX has also already thrown a few lifebuoys. Forbes talks about the $750 million line of credit that the FTX boss allegedly granted to crypto companies Voyager Digital and BlockFi, when these two companies were affected by the collapse of Luna.

“We’re ready to make a bad deal here, if that’s what it takes to stabilize things”explained Sam Bankman-Fried on this subject.

And lifelines, FTX had already thrown some in 2021. As an article published by NPR recalls, last year the Japanese platform Liquid lost cryptos worth $ 100 million, following a hack . FTX then financed the platform to the tune of 120 million dollars, before announcing a project to acquire this company.

Nevertheless, the billionaire cannot save all companies at risk of bankruptcy. And in some cases, some platforms would be unsaveable.

“There are companies that are fundamentally too far behind and it is impractical to support them for reasons such as a large hole in the balance sheet, regulatory issues or that there is not much business left to save”he said.

According to Forbes’ explanations, these cash injections would not be altruistic. But the FTX boss is said to be aware that his personal fortune depends on the health of the crypto market. On the other hand, it could also take advantage of the crash to strengthen its grip on the market.

For example, while FTX is already a shareholder of the Robinhood platform, with a 7.6% share, rumors have recently circulated about a possible acquisition. However, these rumors were denied by Sam Bankman-Fried.

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