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HomeBUSINESSThe fall of the “altruistic” cryptocurrency expert puts the market under control

The fall of the “altruistic” cryptocurrency expert puts the market under control


If the Sam Bankman-Fried case shows anything, it’s that digital educators, despite working with complex algorithms and systems, have feet of mud. It was him Mark Zuckerberg of cryptocurrency. He has been compared to Warren Buffet. With less than 30 years old, he already had a fortune of over $26,000 million. Within hours, the sweet boy in the crypto world announced his company’s bankruptcy, causing an earthquake that some analysts are already comparing to the fall of Lehman Brothers’ bank, he summed up in his Twitter account.

He also asserted that he would return, and that by following the American ideal he would recover the nearly $25,000 million he had just lost. It should be with other shortcuts. Until this week, SBF (as it’s known in the industry) led FTX, a thriving cryptocurrency exchange like Bitcoin or Ethereum. The fourth largest cryptocurrency group in the world.

Landmarks that collapsed like the House of Cards due to the company’s great need for cash: Nearly 8000 million dollars. SBF tried in every way to avoid the inevitable. He was on the verge of being rescued by one of the largest bitcoin companies in the world, Binance. There was no way. The company backed down and was forced to declare FTX bankrupt.

It’s the first commercial hit for this son of Stanford law professors. Bankman Fried was born in 1992. Before starring on the covers of “Forbes” and reaching the top of the digital world, he studied at a small private school in California and entered the prestigious Massachusetts Institute of Technology … To graduate in Physics. He once said, “It would be nice if I were a hippie and liked science less.”

Shortly thereafter he became an arbitrage trader at Jane Street Capital, a financial services firm where he understood what leverages he needed to activate to increase returns on equity assets.

He quickly jumped into the world of cryptocurrency, but without the vague passion that most investors have in assets like Bitcoin. The young investor boasted of altruism. Like one of his greatest supporters, British philosopher Jeremy Bentham, Bankman-Fried is guided by utilitarianism. The best procedure is the one that provides the best results for the participants. The young investor claimed that his investments in cryptocurrency would one day allow him to make millions of dollars in donations to the most disadvantaged.

The truth is that the biggest beneficiaries of the Bankman-Fried boom were Democratic Party American. During this 2022 election cycle, he has donated more than $40 million to various Democratic candidates (only billionaire George Soros has made more money to the cause), and in addition, he has secured a $1 billion contribution to help defeat Donald Trump if he scores in the race to return to the White House year 2024.

Among the biggest victims of his downfall, the cryptocurrency world in particular. Analysts are already asserting that the fall of FTX will lead to an earthquake among cryptocurrencies with unpredictable consequences. Some are already claiming that this could be the crypto bank Lehman Brothers, referring to the downfall of the investment bank that caused the 2008 financial crisis. Currently, bitcoin has fallen below $16,000, the lowest level in the past two years. Meanwhile, Zuckerberg’s crypto game, the last cracked game in the digital world, still holds a billion assets. We promise to try again.

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