The co-founder and chief executive officer of crypto exchange FTX is identifying a combination of factors that could hurt the overall crypto market.
In a new interview with MarketWatch, Sam Bankman-Fried says that a mix of regulations, liquidations, and sizable crashes could flip the public’s bullish sentiment away from cryptocurrencies and digital assets.
“I think the biggest risk is a cascade combining a big crash, liquidations, regulatory inquiries, and rulemaking that is very restrictive but together casts a really negative shadow over the crypto ecosystem.”
The world’s richest 29-year-old says that the United States is the only nation with the power to influence the global crypto markets via such regulatory actions.
“That’s the storm that would be the worst, and it would almost have to involve negative US regulatory action. [It’s] one of the only countries that could cause a kind of global cooling off.”
Bankman-Fried’s comments come on the heels of the crypto market being hit with a $930 million liquidity flush due to margin requirements in traders’ leveraged positions.
FTX was founded in 2017 in the Bahamas and is the third-largest crypto exchange, according to CoinMarketCap. It hit a total valuation of $25 billion last week after its latest round of fundraising, which saw the company haul in around $420 million.
The platform’s token FTT is changing hands at $60.56 at time of writing, an 11.5% decrease from its seven-day high of $68.45, according to CoinGecko.
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