In a new issue of Fortune titled “The Next Buffett?”, this prestigious magazine chose to interview FTX founder, Sam Bankman-Fried.
Along with that, this young CEO also appeared on the cover of the magazine. This has caused the community to stir about the influence of the FTX exchange and wonder if Sam is a second “Warren Buffett”?
The “Otaku” of the crypto world
Fortune describes Sam Bankman-Fried as a friendly, skilled, explosive Otaku who cares about LOL (League of Legends) and magic games.
If you do not know about Otaku, this is a Japanese term used to refer to people who are too passionate about manga and animation or video games. In general, Otaku is a common word for people who are so absorbed and love something that they express it intensely.
However, there are special points in Sam that are unlike any other powerful figure in the crypto industry.
In addition to being a crypto billionaire (with an estimated net worth of $11.5 billion), Sam has recently been known by the community as a “knight”, rescuing several crypto companies from a “crush”. liquidity storm” harsh.
What does Sam say about crypto winter?
The CEO of FTX admitted that although he had predicted that the market would enter a downtrend, he did not expect large-scale liquidation issues, as well as more negative market corrections.
However, he believes that two-thirds of the crypto market has plummeted due to the impact of the global economy, and the remaining one-third is because of the space itself.
“Of course, the worst is over, there may be other liquidations, but not as bad as before. I think this bear market is a healthy reshuffle for the crypto industry. People can rethink property valuation. It will also become simpler.”
While feeling the worst is over, Sam considers the economy a more important variable. Britain estimates that if the Nasdaq falls 25% and the Federal Reserve raises interest rates to 7%, the world could experience a recession lasting about two and a half years. If that happens, Bitcoin will continue to fall causing new liquidations to arise.
Greed when others are fearful?
As we all know, Sam has recently supported multiple credits to many troubled companies, such as BlockFi and Voyager Digital. For these investments, Fortune describes it as a practice from Warren Buffett’s famous philosophy that MarginATM mentioned (here): “I’m greedy when others are fearful.”
Sam also explains his stock buyback strategy. His first consideration was whether the users of those companies could withdraw their assets and whether the transaction could prevent mass liquidations. And the final question is whether FTX can get “good looks” on these deals.
“Our job is not to make incredible acquisitions. Instead we do some sensible deals, even ones that don’t seem promising, but we can buy them.”
An anonymous source revealed to Fortune that Sam’s generosity has brought him many things, including a lot of debt. To that rumor, the CEO of FTX responded that the reason he is said to be generous is trust. Sam shared that lack of trust is a huge cost, a lesson he learned when he started a business.
“A big part of that is trust. In the past, when trading, I didn’t want to worry about whether the other party was playing behind my back in 20 ways that I didn’t expect. If there is a lack of trust between the two sides, the deal won’t work, right?”
As a result, Sam will set the bar in these acquisitions, “shaking hands” in a sensible way, and showing the partner that FTX doesn’t want bad moves behind the scenes.
“Think about things from a win-win perspective, and then we can start thinking about how to share the pie.”
A “different” KOLs in crypto
In the crypto world, there are many famous KOLs known and favored by the community with a friendly look like the “father” of Bitcoin – Satoshi Nakamoto or Changpeng Zhao – the founder of Binance.
Although Sam Bankman-Fried is also one of the most powerful figures in the crypto space, he has some differences from others. Sam is a person who has repeatedly donated money to political causes such as the 2020 Biden campaign.
That’s why Fortune once commented that FTX CEO that he is a talented leader in the crypto world, but can also cause discontent for some crypto enthusiasts. Influencers in this space seem to expect blockchain to “change the world” and eliminate centralization of government agencies. However, for Sam it is different, he sees this field as an opportunity to make money and earn as much money as possible to serve society.
Instead of spending money on luxury things like supercars, yachts, or luxury vacations, Sam lives a simple, vegetarian lifestyle and says he will donate most of his fortune to charity.
“I will say this: I will do the right thing for the people who really believe in this industry. I believe in blockchain because the technology is beneficial and can make the world a better place in specific ways. I think I’m an example of a group of people who believe in the industry, even when they see it from a different angle,” shared FTX CEO.