Crypto
Sam Bankman-Fried: The rise and fall of a cryptocurrency prodigy
Sam Bankman-Fried owned an estimated $22.5 billion fortune earlier than he was 30. Solely Mark Zuckerberg had executed higher at that age due to a money-making machine known as Fb. However after he turned 30, every thing modified. Now that FTX has filed for chapter, this Californian and son of two Stanford College legislation professors is not even a member of the billionaires’ membership. His dizzying fall has so much to do with the world through which he constructed his wealth – cryptocurrency – the place money and time run at a distinct pace. It’s quick and risky, and all the time calls for extra.
However SBF, because the FTX founder is understood, by no means appeared hell-bent on accumulating wealth for himself. Neither is he an ardent libertarian like lots of the anti-taxation Bitcoin trustworthy. SBF believes that the wealthy, together with himself, ought to pay extra taxes. He’s loath to proclaim cryptocurrency omnipotence as others do, and as a substitute espouses a realistic method to make them worthwhile. SBF is a proponent of “efficient altruism,” a philosophy that advocates maximizing the nice you are able to do for others together with your cash. He even promised to present away most of his fortune throughout his lifetime. “My objective is to have affect,” he mentioned in an interview with Forbes journal final 12 months.
And for some time, it appeared that his beneficiant philosophy might certainly have lasting affect. At its peak, his fortune stood at $26.5 billion. However a lot of that fortune was tied to his FTX shareholdings and the FTT token, each of which swiftly collapsed from a liquidity disaster that triggered large withdrawal requests by clients panicked by the prospect of shedding every thing.
SBF’s ascent was equally swift. The younger man based quantitative buying and selling agency Alameda Analysis in 2017, and rapidly added zeros to his checking account after exploiting a seemingly apparent alternative. “Bitcoin was buying and selling for $10,000 on a US alternate and $11,000 on a Japanese alternate. You are taking $10 million… you purchase $10,000, you promote at $11,000, you make one million {dollars}, and we have been ready to try this each weekday,” he defined in a video.
He claims to have made $20 million that approach and used the cash two years later to create FTX in Hong Kong, a buying and selling platform for getting and promoting Bitcoin and different cryptocurrencies. FTX turned one of many largest cryptocurrency exchanges on this planet and was as soon as valued at $40 billion. In September 2021, he moved his headquarters to the Bahamas, the place he lives in a penthouse with 10 associates, together with some who run his companies. Though his lifestyle is clearly higher than most, he eschews luxuries like costly watches and sports activities vehicles, and as a substitute drives a $20,000 Toyota Corolla.
A physics main who graduated from the distinguished Massachusetts Institute of Expertise (MIT), SBF is a vegan and dedicated animal safety and local weather change activist. He grew up loving the Harry Potter books, the San Francisco Giants baseball group, and video video games like Starcraft and League of Legends.
Till lately, SBF’s life appeared to be a online game that he was all the time profitable. One among his shut colleagues tells the story of how he watched SBF play League of Legends whereas concurrently engaged in a Zoom video assembly with traders from Sequoia Capital. His multitasking talent was such that SBF was capable of persuade the traders to jot down a test that day and likewise win the online game. Sequoia Capital lately introduced that it was writing down its $210 million FTX funding to zero.
Though he’s now the seen face of a company disaster which will wipe him out and trigger heavy losses for his purchasers, SBF was as soon as the second richest man within the crypto world after Binance CEO, Changpeng Zhao. In August, Fortune journal known as him the subsequent Warren Buffett, evaluating the Berkshire Hathaway tycoon’s $5 billion rescue of Goldman Sachs in the course of the Nice Recession, to SBF’s current life-saving assist to a couple firms embattled by the continued crypto winter. Different pundits went additional again in historical past and known as him a modern-day John Pierpont Morgan, the legendary financier who was pivotal in saving the US monetary system in the course of the panic of 1907 when Wall Road collapsed underneath an avalanche of financial institution and different enterprise failures.
However the white knight who used FTX assets to bail out embattled crypto corporations Voyager Digital and BlockFi immediately discovered himself cornered. As he appealed on social media and elsewhere for assist, he overtly acknowledged his personal accountability. “I fucked up,” he crudely admitted in a sequence of messages explaining what occurred, and he apologized to clients who couldn’t get their cash out. However his public mea culpas couldn’t stem the tide that finally drowned the corporate and prompted a whole lot of hundreds of small traders who trusted in FTX to lose cash.
Hundreds of thousands in political donations
Just some days in the past, earlier than the storm, SBF’s Twitter posts had a really completely different really feel. Within the run-up to the midterm elections, he talked about donating $40 million to Republican and Democratic candidates who have been dedicated to stopping new pandemics and selling cryptocurrency-friendly laws.
His $5 million donation to Joe Biden’s presidential marketing campaign a number of years in the past attracted media consideration because the second largest behind Michael Bloomberg’s $56 million contribution. And he talked about elevating the stakes even greater in 2024. In a Might podcast interview, SBF hinted at making a record-breaking billion-dollar donation to the 2024 Democratic candidate for president, particularly if Donald Trump turned the Republican nominee.
That may by no means occur now. Binance backed out of its FTX buyout bid after reviewing the corporate’s books, and the US Securities and Trade Fee (SEC) launched an investigation into potential misuse of shopper funds for unauthorized danger operations. It was an excessive amount of for the younger man who as soon as paid $135 million for the naming rights to the sector the place the NBA’s Miami Warmth play their house video games. All the pieces the precocious SBF had constructed within the cryptocurrency world had collapsed, and he has joined the undesirable ranks of failed enterprise leaders like Do Kwon, the South Korean creator of the defunct Luna cryptocurrency. It’s a a lot much less flattering comparability than Warren Buffett and J.P. Morgan.
Crypto
VT Markets Anticipates Cryptocurrency Growth from Policy Changes and Market Momentum in 2025 Q1 Economic Outlook
HONG KONG SAR – Media OutReach Newswire – 13 January 2025 – VT Markets, an award-winning financial services provider, today releases its 2025 Q1 Economic Outlook. The report highlights how the dual tailwind of favourable policies and market dynamics will propel the cryptocurrency sector into a new era of mainstream adoption. The report also underscores the transformative strides achieved by cryptocurrencies in 2024, which sets the stage for further growth in the upcoming year.
2024 As A Landmark Year for Cryptocurrency
With the conclusion of the 2024 U.S. Presidential election, cryptocurrencies have ascended from niche assets to mainstream investment products. Political developments, particularly arising President Trump’s re-election and his pro-cryptocurrency stance, acted as the main catalyst for this phenomenon. Participants observed Bitcoin’s price surging by over 40%, crossing $108,000 by year-end anticipating dovish policy shifts and renewed investor confidence towards the digital asset.
Key regulatory appointments, such as naming crypto advocate Hester Peirce as SEC Chair, signalled to the market a shift towards a more favourable regulatory framework, instilling optimism in institutional and retail investors alike.
The Rise of Spot Bitcoin ETFs
In early 2024, the U.S. SEC approved multiple spot Bitcoin ETFs; a significant breakthrough for the cryptocurrency industry then. By year-end, assets under management for these ETFs grew from $28.8 billion to $110 billion. Among them, BlackRock’s IBIT ETF stood out, achieving record-breaking $30 billion AUM in under 300 days.
This development not only validated cryptocurrencies as a mainstream investment class but also paved the way for wider institutional participation. The integration of cryptocurrency into traditional finance is seen as a key step toward standardisation – an issue which has plagued the industry since its inception.
Liquidity and Risk Appetite Fuel Growth
Macroeconomic conditions, including the Federal Reserve’s shift towards an easing monetary policy, contributed to increased market liquidity and higher risk asset valuations. Cryptocurrencies, known for their high-risk, high-reward profile, inevitably emerged as a preferred choice for portfolio diversification, further driving their adoption and price momentum.
2025 Will Be A Year of Regulatory Clarity and Technological Innovation
Looking ahead, the cryptocurrency sector is poised for greater regulatory clarity and broader market acceptance globally:
United States: Expected legislation on stablecoins and other crypto assets will a establish a clear regulatory environment.
European Union: The upcoming implementation of the Markets in Crypto-Assets Regulation (MiCA) will enhance transparency and compliance.
Asia-Pacific: Singapore and Hong Kong are set to strengthen their positions as regional crypto hubs, promoting Web3 development and reopening licensing opportunities for exchanges.
Emerging Markets: Countries like Brazil, the UAE, Australia, and South Africa are advancing efforts to legitimize cryptocurrencies, potentially becoming regional leaders in the sector.
A New Era for Mainstream Cryptocurrency Adoption
The VT Markets’ Research Desk suggests that the confluence of supportive policies, transparent regulations, and robust market conditions will accelerate the mainstream adoption of cryptocurrencies.
They believe that this transition from speculative assets to recognised investment products will be a pivotal moment in financial innovation.
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Crypto
Experts celebrate promising new breed of cryptocurrency: 'Not only promises efficiency …'
An up-and-coming player in the world of cryptocurrency is looking to revolutionize the industry through its unique processes that highlight sustainability.
According to Be3, cryptocurrency XRP, developed by Ripple Labs, could have a “transformative impact on both finance and environmental sustainability” thanks to its unique consensus mechanism that does not require mining and uses a negligible amount of energy even as it scales.
It generates a minuscule amount of pollutants per transaction while producing 1,110 pounds of electronic waste and impacting just over 8 cubic miles of natural resources.
This approach separates XRP from its contemporaries, which often rely on the notoriously power-hungry proof-of-work systems and hulking mining centers that can destabilize the grid.
Statistics provided by TRG Datacenters show that XRP is the second-most eco-friendly cryptocurrency behind IOTA, consuming just 0.0079 kilowatt-hours per transaction. Comparatively, bitcoin ranks last at a staggering 707 KWh per transaction.
Furthermore, the cryptocurrency became the first major global blockchain to achieve carbon net zero by purchasing enough renewable energy to offset its minimal energy requirements, per the XRP Ledger.
Be3 also noted other features that make XRP an attractive option for institutions focused on environmental responsibility, as it takes just three to five seconds to settle at fractions of a cent per transaction.
It’s a welcome addition to a sector that desperately needs more sustainable options. A study by the International Monetary Fund found that crypto mines, in conjunction with artificial intelligence data centers, accounted for 2% of global electricity demand and 1% of carbon dioxide pollution in 2022.
The United Nations found that the bitcoin mining network used 173.42 terawatt-hours of electricity between 2020 and 2021, resulting in a carbon footprint equivalent to burning 84 billion pounds of coal.
Coal and natural gas also supplied 66% of the energy for mining operations during this period, polluting the planet with planet-warming gases.
Luckily, the sector has made significant strides in recent times in an effort to become more eco-friendly.
Alephium, which utilizes a proof-of-work blockchain, has partnered with Gigatons to implement a proof-of-less-work consensus that is significantly more energy efficient.
Meanwhile, Ethereum has transitioned to a proof-of-stake system that has cut its energy consumption by nearly 100%.
“In a world increasingly attentive to environmental impact, XRP’s innovative technology not only promises efficiency but also a greener future,” Be3 wrote.
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Crypto
ZIUM Launches to Revolutionize Instagram and Cryptocurrency Solutions
Zagreb, Croatia–(Newsfile Corp. – January 12, 2025) – ZIUM, a cutting-edge agency founded to tackle some of the most pressing challenges in social media and digital marketing, is now officially open for business. Specializing in Instagram username claims, account unbans, and cryptocurrency marketing, ZIUM has positioned itself as a trusted partner for individuals and businesses seeking innovative solutions in the digital age.
The agency operates at the intersection of technology, social media, and blockchain marketing, empowering clients to unlock their full potential online. With a dedicated team of experts and a results-driven approach, ZIUM is redefining the way people navigate the ever-changing online landscape.
ZIUM
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A New Era of Digital Problem Solving
ZIUM’s services address real-world challenges in today’s digital ecosystem. Instagram, one of the largest and most influential social platforms, has become a critical tool for personal branding, business promotion, and community engagement. However, issues such as unavailable usernames or unfair account suspensions can hinder growth and cause frustration. ZIUM steps in to provide solutions that are fast, efficient, and tailored to each client’s needs.
Additionally, ZIUM excels in cryptocurrency marketing, offering projects and startups a strategic edge in the fast-paced blockchain industry. By combining deep knowledge of crypto trends with cutting-edge marketing strategies, the agency helps blockchain projects stand out in an increasingly crowded market.
Core Services Offered by ZIUM
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Instagram Username Claims
In the crowded social media space, having the perfect Instagram username can make all the difference. Whether it’s for a brand, influencer, or business, ZIUM specializes in acquiring sought-after usernames to align with clients’ goals and identities. The agency handles the process from start to finish, ensuring a smooth and hassle-free experience. -
Instagram Account Unbans
Account suspensions on Instagram can be devastating, especially for businesses and influencers relying on the platform for engagement and revenue. ZIUM offers expert account recovery services, helping clients navigate Instagram’s policies to regain access to their accounts quickly and effectively. -
Cryptocurrency Marketing
The cryptocurrency space is highly competitive, and visibility is key. ZIUM provides end-to-end marketing strategies tailored to blockchain projects, ensuring they reach the right audience. From brand development to targeted campaigns, ZIUM helps crypto ventures grow and thrive in an ever-evolving market.
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