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Participants in the cryptocurrency industry should not support projects that find themselves in a difficult situation due to adverse events in the market. The commissioner explained SEC Hester
Participants in the cryptocurrency industry should not support projects that find themselves in a difficult situation due to adverse events in the market. The commissioner explained SEC Hester Pierce for Forbes.
“As the situation gets a little more complicated, you’ll find out who actually created something long-term and who will soon disappear,” the official said.
He thinks that supporting projects that are in a difficult situation harms the sector. Pierce added that a different behavioral pattern could be an opportunity for market participants and regulators to see how the industry is performing in times of acute stress.
“Cryptocurrencies do not have a recovery mechanism […]. I don’t mean to say we’re going to come and try to find a way to help you. […]. “But even if we did, I wouldn’t want to use that power, we really need to let things like this develop.”
Earlier, Sam Bankman-Fried, head of FTX and Alameda Research, announced that he is ready to help cryptocurrency market participants mitigate negative events due to the Celsius and Three Arrows Capital issues.
In particular, Alameda Research provided broker Voyager Digital with a loan of 200 million USDC and a revolving loan for 15,000 BTC (~$300 million).
In 2021, FTX prevented Japanese cryptocurrency exchange Liquid from going bankrupt after its hot wallets were hacked. The platform acquisition process ended in February 2022.
On June 21, BlockFi agreed with FTX to provide a revolving line of credit of $250 million. Analyst FatMan described the arrangement as a “deal with the devil” and user Raja saw Bankman-Fried’s malicious intent on the deal, which supposedly “endangered everyone”. such a position and then “recovers”.
SkyBridge Capital founder Anthony Scaramucci described the head of FTX as “the new John Pierpont Morgan” in a conversation with Bloomberg.
“It is rescuing the cryptocurrency markets like JP Morgan did after the 1907 crisis,” Scaramucci said.
As a reminder, FTX, Coinbase, and Crypto.com have reviewed their marketing spend amid the market downturn and increased regulatory attention.
Earlier, Binance CEO Changpeng described the crypto winter as a good time to hire new employees and further develop the business.
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Source: Fork Log
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
