Sam Bankman-Fried (SBF) is considered an icon of the crypto space. With its companies Alameda Research and FTX, SBF has made a fortune since 2018. According to his own statements, he owns more than 10 billion US dollars, mostly in illiquid assets. In an interview with New York Magazin, the young entrepreneur explained how he succeeded.
After Sam Bankman-Fried (SBF, as he is called in crypto space) discovered huge arbitrage opportunities in 2018, the former Wall Street analyst dived into crypto space. In doing so, he notices a possibility to take advantage of the massive price differences of Bitcoin. Especially on South Korea’s stock exchanges, the price discrepancies with foreign trading venues are huge, sometimes up to 30 percent. However, since the local currency is difficult to convert into US dollars, Bankman-Fried decides to switch to Japan, where there are also large price differences on the Bitcoin exchanges.
For example, SBF and a few friends with whom he had started a trading company called Alameda Research in Berkeley cobbled together a chain of middlemen, including obscure banks in rural Japan, to exploit the price discrepancy. About the trade these days, he says in an interview with New York Magazine:
You can do the math. It was the craziest trade I had ever seen.
Bankman-Fried earned up to 25 million US dollars a day with his young company Alameda Research. Today, his trading company, Alameda Research, makes $ 2 billion a day.
SBF is currently building its second “baby”: the FTX crypto exchange. In addition to cryptocurrencies, users can also buy tokenized shares, such as those currently from corona vaccine manufacturers, at comparatively low fees. Recently, SBF was also happy to receive its FTX token. This posted a price gain of 105 percent in the last 30 days. Together, Alameda and FTX made Bankman-Fried one of the richest people in the crypto community. Personally, he assures us in the above interview, he looks at a fortune of around ten billion US dollars. Money that he donates, among other things.
FTX founder donated millions to US President Biden
As the US election campaign is in full swing, the FTX founder makes a decision. He supports the Democratic presidential candidate Joe Biden with a $ 5 million donation. As a result, an election campaign spot arises. He justifies this decision less with specific issues that Biden wanted to realize. Rather, Bankman-Fried longed for “general stability” and he saw that not in the re-election of Donald Trump, but rather in the eventual election winner Biden.
On election night, he saw the chances for Biden’s opponent Trump at around 30 percent. However, after the “Swing State” Florida went to the Republican, SBF was “99 percent sure” that Trump would win. He is glad he was wrong. He does not know whether he will donate funds for the election campaign in 2024.