FTX to Create Stablecoin in Future
- FTX CEO, Sam Bankman-Fried, confirmed with the Big Whale that a deal was not on the table for the Robinhood trading app.
- SBF claimed he was ready to raise funds for more acquisitions.
- The crypto billionaire sees a stable future for cryptocurrency due to the introduction of regulatory measures.
Crypto exchange, FTX, might launch its own stablecoin soon, the company’s CEO, Sam Bankman-Fried, revealed in a recent interview with the Big Whale. The 30-year-old crypto billionaire, however, claimed he would love to undertake such a venture with a partner. FTX might also release an official announcement of the project. The company’s CEO told his audience, “I think you’ll probably be hearing something from us on that in the not-too-distant future.”
FTX’s market rival, Binance, launched its own stablecoin, Binance USD, in 2019. Nevertheless, SBF claimed his crypto exchange already knows how to create a stablecoin but prefers a collaboration. He remarked,
We’ve held off on doing it because, I think to some extent, we think that cooperating on that can be really powerful and a lot of that ends with us trying to find the partners we’d be really excited to work with there.
Stablecoins are one of the most popular crypto assets, preferred for their stability, compared to regular cryptocurrencies such as Bitcoin and Ethereum, which are highly volatile. Both assets have lost 60% of their value since the bear market began. But, stablecoins usually have their value pegged to that of a fiat currency such as the dollar. The USDC and USDT are two of the most popular stablecoins.
Crypto enthusiasts are curious to find out how an FTX stablecoin would compete in the market. The company already offers margin trading, allowing its users to use a basket of US dollar-pegged stablecoins as collateral. The basket includes Binance USD (BUSD) and USD coin (USDC), to name a few.
FTX Plans For More Acquisition
FTX CEO, Bankman-Fried, has maintained an active presence on social media. Some of his comments have drawn heavy criticism, while others simply informed the community of his future plans, one of which he said was to raise more funds to continue his purchase. The crypto billionaire has made a name for himself by acquiring embattled crypto projects, and he seems set to continue in that direction.
FTX currently has a cash position of around $1 billion to $4 billion. During his recent interview with The Big Whale, SBF said he believes the company is “in a great position to do small and medium-sized acquisitions.”
Speaking in detail about his plan, the crypto developer said,
If we want to do large acquisitions, and don’t want to spend all the cash we have on hand on that, then doing a raise would be very helpful for that. At the same time as we are looking at possible acquisitions, we are also potentially looking at doing a fundraise.
SBF was also asked to comment on the rumored purchase of the Robinhood trading app, to which he confirmed a deal was not in sight. The focus, SBF claimed, is to “grow organically.”
Bankman-Fried also confirmed Paris as his preferred European headquarters, should FTX be in need of one. He said,
To the extent that we’re looking for a place central to Europe—not just in terms of location but in terms of the role that it plays—it’s hard to get more central than France and Paris.
When asked if he was optimistic about the next few months, the FTX boss said he could not predict what would happen from a “macroeconomic point of view in the coming months,” adding, “It all depends on the interest rates.” The billionaire said he was generally “optimistic about the future of cryptos because the industry keeps growing.”
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
