FTX founder SBF: Dogecoin is still far from Bitcoin and does not pose a threat

SBF accepted a live interview with Bloomberg and expressed his views on the difference between cryptocurrency and traditional finance and the changes in the financial era.

Rhythm BlockBeats news, on May 11, FTX founder SBF accepted a live interview with Bloomberg, expressing his views on the differences between cryptocurrencies and traditional finance and the changes in the financial era. FTX had a trading volume of over $400 billion in April, while Coinbase shares have a market capitalization of $58 billion after listing, thanks to growing volumes in the cryptocurrency market.

Analysis: Alameda withdraws more than $1.5 billion from FTX from October 20th to November 2nd: News on November 24th, according to 0xScope analysis, during the period from October 20th to November 2nd (CoinDesk disclosed Alameda’s balance sheet After that), Alameda ranked first with over $1.5 billion withdrawn from FTX. Genesis withdrew about $300 million, but deposited back $40 million a day before FTX stopped deposits. Jump also withdrew $300 million from FTX and has not deposited since. [2022/11/24 8:04:44]

The Bloomberg host asked SBF on this matter: "Do you think the current cryptocurrency boom is a phenomenon out of control, or is traditional finance already outdated (passée)?"

FTX US: ETH withdrawals to resume soon: According to official sources, ETH withdrawals from FTX US will resume soon. In addition, Matic withdrawals only support withdrawals to the Ethereum mainnet. [2022/11/11 12:50:32]

SBF said: This matter can be viewed from two aspects. The first is a more pessimistic idea, that is, there are a lot of leverage in the cryptocurrency market, and it is easy to have a drop of more than 5-20% in a day. It's all about leverage. He went on to say that from an optimistic point of view, in the past year, most financial regulators in the world have begun to make a difference, so that more large financial institutions are willing to get in touch with encrypted currency assets, so that the industry has the opportunity to be able to achieve substantial growth. the

Bloomberg Moderator: The Governor of the Bank of England said before that investing in cryptocurrencies is to be “prepared to lose everything.” What do you think?

Web3 social protocol Lens Protocol has been invested by FTX Ventures, the specific amount has not yet been disclosed: On November 4, it was reported that FTX Ventures, the venture capital arm of encryption industry giant FTX, has invested in Web3 social protocol Lens Protocol, but declined to disclose the specific investment amount. A spokesman for the development team behind Aave Protocol and Lens Protocol confirmed that Lens Protocol is raising funds, but did not confirm the size of this round of financing and the closing time of the financing transaction.

It is reported that Lens Protocol is a composable decentralized social graph with general social media functions, such as profile editing, commenting, forwarding posts, etc., allowing users to create NFT to own and control all the content-zce they create. (Fortune Magazine)[2022/11/4 12:16:20]

SBF: If you want to invest in cryptocurrency, you must first be mentally prepared to lose money. There's nothing wrong with that, as cryptocurrencies are much more volatile than stocks. However, if you invest in a high-risk investment, you should understand the risks and be prepared to lose money when the market falls.

FTX may subsidize tens of millions of dollars for Gas fee payment this year: On February 23, the Ethereum Gas fee once soared to 1498Gwei, setting a record high. It is reported that since the establishment of the encrypted derivatives trading platform FTX, it has launched a variety of rewards such as zero handling fees for coin withdrawals and zero delivery fees for contracts. At the same time, the official revealed that this year FTX is expected to subsidize tens of millions of dollars for Gas fee payment and so on. [2021/2/23 17:44:45]

However, SBF does not consider this a serious matter.

Bloomberg Moderator: Recently, altcoins such as Ethereum and Dogecoin have risen sharply. What do you think about this?

SBF: The rise of Ethereum and Dogecoin are completely different things. Because Ethereum has indeed begun to attract some institutions that only bought Bitcoin in the past, and began to buy Ethereum. The reason for the rise of Ethereum is more complicated, it is caused by many driving forces. Relatively speaking, the reason for the rise of Dogecoin is relatively simple. It's like retail investors buying GameStop (GME) and Telsa (TSLA) hype, especially Musk's buying.

Bloomberg host: Do cryptocurrencies have fundamentals, or is it just speculation?

SBF: "Some coins have fundamentals, but there are also many that are not supported by fundamentals at all. However, from another perspective, what are the fundamental drivers of the value of assets such as gold and the euro? They all come from Our collective imagination. The operation of many currencies comes from our collective imagination, and the same is true for cryptocurrencies. And because many people want to buy Dogecoin, it also brings value to it.” ​​

Bloomberg host: Will Dogecoin pose a threat to Bitcoin?

SBF: Over the years, there has been a lot of concern about Bitcoin, but it never really had an impact. The growth of Dogecoin is indeed surprising, but it is still far from Bitcoin. Bitcoin has indeed gained the value recognition of many people and has the most adoption rate, but this does not mean that it will never change. However, what can really challenge the status of Bitcoin is not just a meme, but more incentives that financial institutions are willing to pay attention to.

Host of Bloomberg: If the return to the bear market has an impact on the financial market?

SBF: The current situation is mostly good for the crypto market, because it has come under the spotlight of the financial market. It's not just things like "Bitcoin as an alternative asset" or "safe haven asset". Now blockchain and cryptocurrency are getting more attention than before. But for now, the cryptocurrency market cannot be regarded as a systematic point in the global financial market, so it will not have any impact for the time being.

Moderator of Bloomberg: Some people think that it is not important whether Dogecoin has fundamentals, but the point is that it has volatility. What should we pay attention to in such a view?

SBF: That is zero, I would not recommend investing in such high-risk assets. However, just as gold's value doesn't come from its use as a metal, you never know what's going to happen with Dogecoin.

Moderator of Bloomberg: Will there be an IPO plan next?

SBF: There's no way we haven't thought about an IPO, but it's not a near-term plan. What we are doing is that there will be more acquisition plans, and in addition, we will not be acquired in the future. the

Original link

https://www.theblockbeats.com/news/24144

Original video link:

https://www.bloomberg.com/news/videos/2021-05-11/ftx-surges-toward-top-of-trading-ranks-video

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