Sam Bankman-Fried is an American entrepreneur and investor, who is the founder and CEO of the crypto financial services company, FTX. He is a prominent figure in the cryptocurrency and blockchain space, and is known for his successful investments in companies such as Kraken and Coinbase. He also serves on the board of the Chamber of Digital Commerce, a non-profit organization that advocates for blockchain technology and digital assets. Bankman-Fried is a vocal advocate for the adoption of blockchain technology and cryptocurrencies, as well as a strong supporter of decentralized finance. With his extensive knowledge, experience, and influence, Sam Bankman-Fried is one of the most influential figures in the cryptocurrency and blockchain space.
AdvancedPersonalitiesTrading and investment
AdvancedPersonalitiesTrading and investment
- Sam Bankman-Fried, also known as SBF, is the founder of FTX crypto derivatives exchange and Alameda Research.
- In 2022, he entered the TOP 100 influential people according to TIME. He is also one of the richest people in the blockchain and crypto industry according to Forbes.
- Sam Bankman-Fried is worth approximately $24 billion. He is also the sole director of Emergent Fidelity Technologies, which owns a 7.6% stake in online broker Robinhood.
How did Bankman-Fried get interested in cryptocurrencies?
The future entrepreneur was born in 1992 in the family of two law professors from Stanford University. He successfully graduated from high school in suburban San Francisco, attended the Canadian-American summer program for gifted high school students. In 2014, he received a Bachelor of Science degree in physics and mathematics from the Massachusetts Institute of Technology.
After university, Sam Bankman-Fried joined financial firm Jane Street Capital, where he traded futures, ETFs, and stocks. In addition to his main job, he held the position of development director at the Center for Effective Altruism.
Bankman-Fried learned about bitcoin thanks to Gary Wang, a fellow from the fraternity of the Massachusetts Institute of Technology.
When did Bankman-Fried start Alameda Research?
In September 2017, SBF registered Alameda Research, which has been running various operations under the name Delaware LLC for a month now. Gary Wang worked on the prototype of the company’s future automated trading system.
Initially, the main strategy of Alameda was arbitrage on the “kimchi premium” – the difference in the price of bitcoin on the crypto exchanges of South Korea relative to global values. Between 2016 and 2018, the “kimchi premium” averaged 4.8% and peaked at almost 55%. The team was engaged in arbitration operations not only in South Korea, but also in Japan. At the end of 2018, they were performing at least $25 million worth of daily bitcoin transactions, according to Intelligencer.
By 2021, the strategy has exhausted itself: the “kimchi premium” has fallen to zero values.
At the time of writing, Alameda Research is one of the largest market makers and uses sophisticated market-neutral trading algorithms. The company specializes in digital asset management, trading, OTC trading and provides market maker services.
SBF recently stepped down as CEO, Alameda Research’s work remains unchanged.
What projects does Alameda invest in?
Alameda Research invests in various cryptocurrency and fintech projects.
In the first quarter of 2022, the company invested in 20 projects from the Web3, DeFi, NFT, and Metaverse segments. Among them are the Move-to-Earn (M2E) leader Stepn, the Near smart contract platform, the network of secure layer 2 (L2) solutions and autonomous sidechains Polygon (MATIC) and others.
Alameda Research’s main investment is in Solana and its ecosystem. In June 2021, one of the largest investment rounds of the project in the history of the industry ended. Alameda Research has become one of the lead investors in Solana Labs, developing the Solana blockchain.
In addition, Alameda is also a lead investor in the Oxygen protocol launched in the Serum decentralized ecosystem, the Tulip cryptocurrency loan yield aggregator, and the Web3 wallet. Math Wallet.
How did Bankman-Fried create FTX?
Some time after founding Alameda Bankman-Freed disappointed in the quality of the work of cryptocurrency exchanges. They were not intended for large trading operations and were not suitable for professional traders.
In May 2019, Bankman-Fried founded the Hong Kong-headquartered FTX exchange, with Alameda Research acting as the main liquidity provider.
The target audience of FTX is experienced investors trading derivatives. The exchange regularly launches unique and sophisticated trading tools for professionals. For example, in 2021 it launched trading in tokenized securities, and in 2022 it announced the start of trading in tokenized shares of 60 leading companies.
In just three years, the crypto exchange has made great strides. The company’s valuation reached $32 billion, FTX raised $400 million in Series C funding.
According to annual report, FTX spot trading volume increased by 2400% to reach $719 billion. At its peak in November 2021, daily trading volume on the spot market was over $13.8 billion, up 1690% from the same period in 2020. The number of registered users of the exchange reached 5 million.
FTX expands: In early 2022, the company announced the creation of FTX Europe, FTX Australia and FTX Japan. The exchange also has a venture arm, FTX Ventures. The structure will invest $2 billion in startups at various stages of development.
In a recent interview, Bankman-Fried announced the intention of Alameda Research and FTX to help crypto companies in a crisis in the digital asset market. Previously, the operator of the FTX platform has already helped Japanese cryptocurrency exchange Liquid after hacking her hot wallets.
In July 2022, the American division of the FTX US exchange entered into a deal with the BlockFi landing platform, providing for a $400 million loan and an option to buy the company for $240 million. The platform’s losses amounted to about $80 million. will be without impact on customer funds.
What is the condition of Sam Bankman-Freed?
In 2022, he entered the TOP-100 influential people according to TIME, is one of the richest representatives of the crypto industry according to Forbes.
Sam Bankman-Fried’s personal fortune was estimated at its peak at $ 24 billion – it consists of from approximately 90% of FTX, FTT tokens and other cryptocurrencies.
Bankman-Fried is also the sole director and owner of Emergent Fidelity Technologies, which owns a 7.6% stake in online broker Robinhood. The firm purchased 56.28 million shares of Robinhood for $648.29 million. The purchase price was $11.52.
SBF is a philanthropist?
He was always interested in the philosophy and social movement of “effective altruism”. The main idea is to benefit society based on facts and rational arguments.
In 2020, he transferred funds in the amount of $5.22 million to the Joe Biden campaign fund, and in 2024 Backman-Freed will allocate more than $100 million to the presidential race.
He took the “Giving Pledge”, which is a public commitment by the rich people and families of the world to give the bulk of their wealth to charity.
The plans of the head of FTX include the creation of a $ 1 billion fund to combat the prevention of a new wave of the pandemic.
What does Bankman-Fried think about Bitcoin?
Sam Bankman-Fried has repeatedly stated that he should not be considered a “Bitcoin maximalist”, he does not believe in the future of the main cryptocurrency as a key means of payment.
In his opinion, bitcoin does not have the ability to scale the network to millions of transactions per second, it is inefficient, and its blockchain is associated with negative consequences for the environment.
Bankman-Fried is convinced that in order to create a functional network of crypto payments, it is worth using the Proof-of-Stake consensus algorithm. The first cryptocurrency can and should remain in the status of an asset, a commodity and a store of value, and the problem of low transactions per second (TPS) can be solved through L2 solutions.
What does Bankman-Fried think of other cryptocurrencies?
From the very beginning of the development of the project, Sam Bankman-Fried predicted a bright future for products based on Solana.
He believes that due to its high speed and scalability, Solana can not only become the leading blockchain, but also become the new bitcoin. At the beginning of 2021, SBF won a bet: he bet on the growth of SOL in Twitterwhen it was trading at $3. The token reached its all-time high of $250 in the same year.
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Sam Bankman-Fried is one of the most successful entrepreneurs and venture capitalists of the 21st century. He is the founder and CEO of FTX, a cryptocurrency derivatives exchange, and Alameda Research, a quantitative trading firm. He is also an early investor in a variety of digital assets such as Bitcoin, Ethereum, and Polkadot. Sam Bankman-Fried has revolutionized the world of cryptocurrency trading and has established himself as a leader in the industry. His success and influence have earned him a place as one of the most influential people in the world of digital assets.