What Does Sam BankMan-Fried Say About Cryptocurrencies?
In a Twitter post, FTX chief executive Sam Bankman-Fried identified other use cases for the crypto industry beyond its use as a financial investment tool.
According to Sam BankMan-Fried, he will ignore the popular saying from investors that “you can buy tokens and maybe they’ll go up” and focus on its potential use in payments, market structure, and social media.
The ability to pay
In the payments sector, SBF said the dynamics of transactions have changed over time with the development of new technologies and advancements.
According to Sam BankMan-Fried, payments are complex, slow, and expensive as it can take days or months before certain transactions are confirmed using the traditional financial system due to the current challenges in the process.
However, these problems are eliminated with cryptocurrencies because “blockchains allow anyone to create a wallet and use it to send and receive tokens – including USD-pegged stablecoins.”
Sam added that payments are processed in seconds and often “cost as little as a penny.”
Regarding market structure, Sam BankMan-Fried said that traditional markets are at risk of being overwhelmed by transactions. The CEO cites the example of January 28, 2021, when retail interest on Gamestop, AMC, and meme coin transactions increased exponentially.
The presence of several intermediaries in the trading process leads to “payment risk,” accusing these brokers of closing their services to manage the situation.
As a result, users cannot buy or sell their assets, while some people are liquidated and lose money in the process.
The SBF argues that cryptocurrencies help solve these problems in market structure because they “can create simpler, fairer and less risky market structures and arrangements.”
The FTX director noted that social networks’ core problem is their isolated nature.
According to Sam’s tweet, users of one social media platform cannot see what their friends post on other social media sites.
In the words of Sam BankMan-Fried :
“Right now, if you tweet something and your friend logs out Facebook, they can’t see your tweet.”
But with blockchain technology, this could change as platforms become more interactive. Sam argued that if social media networks adopted public blockchains, one user could send a message on Facebook, and another could see the same message on Twitter.
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