The past few weeks have been nothing but bad news for cryptocurrencies. Amid the brutal price crash, made worse by macro headwinds, there have been a slew of negative headlines about crypto.
Simply put, some projects are on the verge of collapse or bite the dust in the crypto winter.
Commenting on the developments, FTX CEO Sam Bankman-Fried said that the crypto sector needs to take steps to prevent any further infections.
“It seems to me that we have a responsibility to seriously consider taking steps, even if it is self-harm, to stop the contagion,” he said. “Even if we didn’t cause it, or weren’t involved in it. I think it’s healthy for the ecosystem…”
— SBF (@SBF_FTX) June 19, 2022
,I feel like we have a responsibility to seriously consider – even if it’s self harm – to prevent infection.,
He noted that it was responsible work to do, even if he had no involvement in it. ,I think that’s what’s healthy for the ecosystem, and I want to do what can help it grow and threeVI,He added in comments NPR first published on Sunday.
The collapse of UST in May triggered a series of liquidity issues for several crypto companies, among them top crypto lender Celsius Network, which halted customer withdrawals amid liquidity problems.
Then Three Arrows Capital, a Singapore-based crypto hedge fund, missed a margin call, and late last week, crypto lender Babel Finance also halted withdrawals, again, citing liquidity issues.
Banksman-Fried did not provide specifics about what he or Alameda has in the pipeline. However, his remarks come at a time when various rescue plans are underway for these projects, including one for Celsius. announced on Sunday.
Last week, crypto broker Voyager Digital secured a revolving line of credit — $200 million in cash/USDC and 15,000 BTC — from Alameda Research, saying the fund will help protect the assets of its clients.
In 2021, Japanese crypto exchange Liquid came to the aid after FTX was hacked for $100 million. At the time, Bankman-Fried’s platform raised a $120 million financing deal for Liquid before acquiring the exchange.