Home Economy SBF and Alameda Intervene to Prevent Cryptographic Breakdown Contagion

SBF and Alameda Intervene to Prevent Cryptographic Breakdown Contagion

Rosario Tejeda
-
0
SBF and Alameda Intervene to Prevent Cryptographic Breakdown Contagion

Sam Bankman-Fried Research (SBF) Alameda Research is “intervening” to prevent further contagion across the crypto sector during the current bear market.

Many crypto companies are facing liquidity issues (of varying severity) as a result of the strong downturn in the market throughout 2022. Major companies such as Celsius and Three Arrows Capital (3AC) are reported to be on the verge of bankruptcy and It can lead to the collapse of others with them if they are going to collapse.

During an interview with NPR on Sunday, SBF advertiser Given the standing of Alameda and FTX, he believes they “have a responsibility to seriously consider intervening, even if at a loss for ourselves, to stop the infection:”

“Even if we weren’t the ones causing it, or we weren’t involved in it. I think this is healthy for the ecosystem, and I want to do whatever can help it grow and thrive.”

The SBF added that its companies have done this “many times in the past,” noting that FTX provides Japanese crypto exchange Liquid with $120 million in funding Last year it was $100 million in August. Notably, FTX announced plans to acquire Liquid shortly after providing it with financing, and the deal is said to be Closed In March of this year.

“I think after 24 hours, we stepped in and gave them a very broad line of credit so we could cover all of their demands, to make sure we made the customers complete while thinking about a long-term solution,” he said. .

Recently, however, crypto brokerage Voyager Digital announce On Saturday, Alameda agreed to give the company a $200 million coin (USDC(loan and a “revolving line of credit” of 15,000 bitcoins)BTC) with a value of $298.9 million at current prices.

Voyager Digital has indicated that the credit facility offered by Alameda will expire on December 31, 2024, at an annual interest rate of 5%, payable at maturity. The company has stated that it will only use credit lines “if needed to protect customer assets” amid heavy market volatility.

The company stated that “the proceeds from the credit facility are intended to be used to protect client assets in light of current market volatility and only if such use is needed.”

Related: A centenary recovery plan was proposed amid a short community-led lobbying effort

While the SBF has set out goodwill to help the suffering of crypto companies, contradictory rumors emerged this month that Alameda played a role in the recent instability in C.

Analysts like PlanC I suggested To its 145,300 followers on Twitter last week, Alameda made a sale worth 50,000 ether (stETH) earlier this month in Try to decipher it from ether (ETH) and jeopardizing a large stETH position held by Celsius, as it would stop the company from exchanging the asset for the equivalent amount of ETH.

Following the rumors circulated to SBF via Twitter on Monday, they dismissed the allegations outright, stating that:

“Lol that is definitely wrong. We want to help those we can in the ecosystem, and we have no interest in harming them – it hurts us and hurts the entire ecosystem.”