Deep Pockets 🤑

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Deep Pockets

Crypto is one of those industries that is just difficult to pin down. There’s lots of new products every day and volatility is extremely common. Recently, this risky asset has been performing poorly. Crypto’s recent crash has been immense, with Bitcoin dropping to an 18-month low (falling below $20,000). The sell-off in crypto came in reaction to headwinds caused by rising interest rates, inflation, and the broader fear of recession. Moreover, because all of these drops occurred in such a short timeframe, it could point towards a broader and more fundamental mistrust in crypto, and the platforms supporting them. Exchanges on different blockchains experienced similar key issues, with Celsius having to freeze lending and Solend considering what to do with a whale.

Although not much support has been available to these companies, some in the crypto space have lent a helping hand. One of the best examples of this is Sam Bankman-Fried, CEO of the crypto exchange FTX. Mr. Bankman-Fried has agreed to help the crypto lending platform, BlockFi, with a new $250 million revolving credit facility. The financing from Bankman-Fried will assist BlockFi in navigating the market from a position of strength.

What do you think about Bankman-Fried and is he making a good decision?

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

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