According to the 29-year-old Billionaire, if FTX achieves complete market dominance in future, it can take over giants like Goldman Sachs and CME.
CEO and Founder of FTX Sam Bankman-Fried has claimed that the crypto-exchange platform might examine the possibility of buying multinational companies like Goldman Sachs and exchanges like Chicago Mercantile Exchange (CME) in the future.
In a conversation with the Financial Times, the 29-year-old Billionaire asserted the possibility of such an event if FTX becomes the largest crypto exchange platform. At present, FTX faces stiff competition from Coinbase and Binance, two of the most famous U.S-based crypto exchanges.
According to Bankman-Fried, the intention of acquiring Goldman Sachs and CME group is not impossible if FTX follows the same path and procures a formidable position as the top cryptocurrency exchange platform.
FTX is a cryptocurrency derivatives exchange that is modeled by the traders and curated to furnish its users with an efficient interface for executive trading firms, intermediate traders, and amateurs. The purchasers can avail advanced exchange markets that include derivative and leveraged tokens.
Sam, who is a physics graduate from MIT, has an approximate net worth of $8.7 Billion. FTX is backed by Alameda Research, which was also founded by Bankman-Fried in 2017. Alameda is a quantitative cryptocurrency trading firm and liquidity provider. The 4-year-old firm operates over $1 billion in digital assets while trading $1-10 Billion a day. The company boasts large-scale international operations with the potential to deal on significant exchanges and markets.
Presently, Goldman Sachs is valued at $129 Billion whereas the CME group is valued at $75.5 Billion. While FTX has seen significant growth in the last three years, it still has miles to go before it joins the league of the giants. The firm made history earlier this year, by securing the naming rights for a famous sports arena. The trading platform shook hands on a 19 years deal with Miami-Dade County.
According to the reports, the company is eyeing a $20 Billion valuation in its newest round of funding. The billionaire stated that the major use of the investment funds would be in Mergers and Acquisitions, which describes the assembly of companies and assets through financial transactions. He also emphasized the use of funds to optimize the retail investor share of the market.
In an interview with Nikkei Asia, Bankman-Fried contemplated the question of FTX going public in the near future. The billionaire suggested going public for bank recognition and other advantages but also expressed his satisfaction with the fact that the company doesn’t require capital and might put the thought on hold.
“We are not actively looking to list but we want to be in a position to go ahead if we want to”, said the 29-year-old billionaire.
Sanaa is a chemistry major and a Blockchain enthusiast. As a science student, her research skills enable her to understand the intricacies of Financial Markets. She believes that Blockchain technology has the potential to revolutionize every industry in the world.
