FTX is run by this cycle's crypto nerd of choice, Sam Bankman-Freid, and being one of the large capitalised of the shitcoin casinos is having a ball in this latest bear market. As the shitcoin casinos compete for users, they had to offer better rates, as they attracted capital they needed to go out and risk that capital to make a return for their holders.
As we can now see that was a broken business model and we saw several of these platforms go bust. FTX has already come in to save BlockFi, they've walked away from a deal with Celsius and are now looking to gobble up Voyager after doing deals to purchase Bitvo and Embed Financia.
Voyager locked up funds recently which upset their customers who could not get access to their deposits and as the heat on the platform increased, they looked around for a bailout and didn't have the luxury to raise capital to save themselves.
FTX to make customers whole...kinda
FTX and Alameda Ventures loaned $500 million to Voyager last month in a bid to help ease its liquidity issues and now want to offer Voyager Digital customers a chance to start a new FTX account with an opening cash balance funded by an early distribution on a portion of their bankruptcy claim.
It’s not yet clear how much each customer will be able to withdraw but it looks like FTX sees this as an olive branch to gobble up new customers. Let's be honest here, if someone is going to make you whole again you're likely to go back and spend your money with them in the future.
As part of the deal FTX would also acquire all its customer information for a payment of $15 million and receive trademarks and other intellectual property as well. FTX would also write off its $75 million loan claim against Voyager Digital, showing how ruthless this game is and how FTX is going looking to pick up all smaller players and consolidate its customer base.
May the bailouts continue so gambling will improve
Yes, a lot of people learned their lesson and rightly got burned in this cycle, as did those who bought ICO's in the previous cycle. It's all been a greed fest that got out of hand and now those that are hurting are looking for someone to save them.
Now it's a battle of the most capitalised, CEXs are going to be ruled by the likes of Coinbase, Binance, and FTX who even own part in other companies that are running.
It's becoming a consolidated play that just means less choice for consumers and once they've got them all in the big ecosystem, it's easy to jack up fees and start profiting from the customer base you acquired.
The game is to get as many people on your platform as possible, the longer they leave their funds with you the more profit you can make trading it, the more the trade with you, the more you can earn fees and rek your customers, who don't know what they are doing.
Sources:
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Lots of power plays being made right now! I wonder if FTX will eventually have issues, since they seem to be doing a lot. If things trend further south, will they have money to cover their current obligations? It seems like they are betting on it going up.
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FTX is got major bank roll and they got a lot of political connections in the US too, it's really between them and coinbase now in the US for shitcoin casino premier while Binance takes the East
I really hate all of those platforms lol
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