A lot of people are quickly becoming millionaires from the crypto industry. But few get rich faster than Sam Bankman-Fried.
Sam Bankman-Fried He has a total net worth of more than $24.5 billion according to Forbes, although that may be underestimated.
“I think it’s right while they’re writing it.Bankman-Fried told Insider this week.But now I think it should be a little higher.”
source of wealth Bankman-Fried is FTX exchange, which he co-founded in 2019 and is currently one of the largest crypto exchanges in the world.
The Bahamas Exchangeworth up to $32 billionlast month After raising more than $400 million from investment giants SoftBank, Tiger Global and Temasek and its U.S. subsidiary, it is valued at $8 billion.
The FTX exchange has a higher asset value. Twitter, the giant stock market Nasdaq and bank Deutsche of Germany, which is not bad for a company that has only been founded for 3 years.
Bankman-Fried Graduated from MIT with a degree in physics, then in 2014 he worked as a trader at Wall Street global trading firm Jane Street. Three years later he founded his own crypto trading company Alameda Research, and in Soon the company was able to make huge money. By taking advantage of the discrepancy in world market prices.
In 2018, he realized that the crypto exchanges he was doing weren’t very good, faulty, unsafe, and had no customer support at all.
“You might feel that it’s a central, important, and really valuable system. But now it’s really bad. And we can do better.” he said.
Bankman-Fried and his co-founder Gary Wang (Gary Wang is an MIT graduate and a former Google software engineer) thought they could have the technical know-how to build a trading exchange.
The key question is Will they be able to attract customers? “The answer is that the range may not be reached at all.said Bankman-Fried.I’m very optimistic, but around 20%“
But customers are gradually coming in more and more. People started talking about the new exchange on social media and spreading the word. Reach record customer growth in 2021: FTX reaches 5 million users by year’s end. Daily volumes hit a record high, reaching $60 billion in May.
Read December’s Insider profile: Sam Bankman-Fried, the founder of FTX, sleeps four hours a day and works in front of six computers at once. An insider explains what this 29-year-old crypto billionaire looks like. and answering difficult questions at his companyare facing
A key part of the FTX’s success is that crashes are rare. Bankman-Fried said. Traders are attracted by their policy of allowing a single account where the margin balance is offset. Rather than having a large margin account (Margin means borrowing money from the broker who is also trading).
And traders love complex crypto derivatives, which FTX specializes in. This allows them to bet on future prices of major tokens such as bitcoin and ethereum.
However, as the center of risky trading, FTX is in the eyes of regulators and legislators.
Bankman-Fried Found myself in Congress last week. by senator Sherrod Brown asked him, : “Is it careless?To make crypto companies rich by selling dangerous and risky goods to Americans?“
Approximately 50/50 of FTX’s clients are retail investors and institutional investors. But investment institutions such as high-frequency trading firms, hedge funds and family business offices. is about 80% of the total income, which is different from Coinbase which is the largest US exchange which receives most of its income from retail investors
From its start-up with just four employees, FTX now employs around 250 people, in contrast to Deutsche Bank, which is valued at $4 billion less than FTX. But with more than 80,000 employees, investors are desperate to get a share of the exchange, but Bankman-Fried said he doesn’t feel pressured to go public:We don’t need funding. We can make a profithe saidWe will do whatever we think is right for the company.“
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