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“Today the Economy, the portrait” of Sam Bankman-Fried, founder of FTX, the virtual currency exchange platform. The richest crypto-billionaire in the world at just 30 years old wants to donate his fortune during his lifetime and it’s not an April Fool’s joke!
This crypto-finance ace has amassed a fortune of around $25 billion. Publicity stunt or sincere intention? Sam Bankman-Fried says he is morally close to utilitarianism, an ethical doctrine which prescribes to act, or not, for the collective well-being. He speaks on a video of Forbes.
« Do as much good as possible in the world »
« My goal is to do as much good in the world as possible. The people I respect the most are those who take action to tackle the problems in our society. Another way to have an impact is to fund these causes and that’s what I did. I went into finance as a priority to try to maximize the amount I can give to the most effective policies. »
This young man with a teenager look will also donate 1% of FTX’s income to charities. It is also the second largest donor to Joe Biden’s campaign in 2020, after Michael Bloomberg, founder of the eponymous financial group, with a donation of more than 5 million dollars.
SBF, for short, learned to walk the halls of the prestigious Stanford University where his parents were both professors of law. Gifted for studies, he obtained a degree in physical sciences from the Massachusetts Institute of Technology (MIT). He then worked as a broker on Wall Street, before moving into digital assets.
In 2017, he created his first company and quickly made a lot of money by taking advantage of the price differences on the various exchange platforms. In 2019, he founded FTX today valued at more than 30 billion dollars. How do we manage to become, so quickly, a leader in trading platforms alongside the giants Binance and Coinbase?
« You have to be in the right place at the right time »
Yves Bennaïm, President of the Swiss Think Tank 2B4CH: “ You have to be in the right place at the right time. Basically, I think he’s pretty smart and very hardworking. What he did was he arrived in a market where there were people who wanted to speculate and he gave them good tools to be able to speculate. The idea is like on the stock market to buy low to sell high or to make sure to win even when it goes down, but with cryptocurrencies like bitcoins and others of course. »
This vegan installed in the Bahamas also knows how to do the buzz with its spectacular fundraising and marketing moves, such as this advertisement for FTX broadcast during the SuperBowl, the unmissable final of American football watched by more than 110 million Americans.
But the tide could turn, because crypto-assets that are traded in a decentralized way are in the sights of regulators. Influencer Sam Bankman-Fried also had to swap his eternal t-shirts and hoodies for a tie suit during his hearing before the American senators. Asked about the CNBC television channel, he said he was in favor of more regulations.
« I am optimistic. This will create a healthier environment for cryptocurrencies, as it will protect consumers against systemic risks, illicit financing. There is a void there. This will also reassure many who are waiting for more clarity to invest. It remains to be seen what impact its regulations will have, but I am sure that we will be able to move forward in a constructive way. »
Yves Bennaïm, founder of think tank 2B4CH: « I think his fortune is assured. I trust him to have released his marbles. So I don’t worry too much about him. However, the real question is whether it will be able to reinvent itself, to develop something that is perhaps a little less at the mercy of a market in fact. »
For now, Sam Bankman-Fried wants to expand his empire around the world. It has just opened offices in Switzerland and Australia.