Bitcoin Forum

GM/GN everyone.

Help me understand this, please.

Following the collapse of the FTX, which impacted valuations and reduced investor interest, Goldman Sachs aims to invest or spend tens of millions of dollars buying crypto companies. Which indicates to me that they clearly see some benefits of blockchain if it's under their control.

Why would one of the biggest investment banks in the world want to buy FTX's scraps?

Sources:

https://www.reuters.com/technology/goldman-sachs-hunt-bargain-crypto-firms-after-ftx-fiasco-2022-12-06/

https://app.getresponse.com/view.html?x=a62b&m=BVUS7v&mc=9Q&s=BtgXWnG&u=QcLhh&z=Ey5USsN&

You must have misunderstood the news article. It didn't say they will buy what's left of FTX but they will buy or invest in cryptocurrencies because the prices are down as a result of the FTX implosion. These banks are business opportunists at the end of the day and will take a calculated risk if a chance presents itself.

My guess is that it's easy to just keep the project going instead of creating a new one. Blockfi and Voyager already have thousands of users on it, so they know they can bring investors in the Tradfi to crypto and Goldman Sach as well will be a trusted counterparty.

The collapse of FTX had boosted Goldmansach trading volume according to them and so they wanna be a savior of these firms.

Of didn't say that they were buying FTX, but crypto companies. There's no talk in the articles that they would invest in cryptocurrencies but cryptocurrency companies, and those are down because of the case FTX .

And why they do this? They see that they can get them almost free and they are in it for the long term. Many crypto companies also might have better fundamentals then most cryptos and actual value behind them. Even if they are now having hard times.

That is not a plan to buy a failed exchange or company, they are trying to take advantage the market situation and if there’s a good company to buy probably they are willing to invest on it but I doubt on a dead exchange like FTX. They are an investment bank which know where to put their money, if they see potential on a bear market then we should also do the same because bull will come and only time can tell, better to be ready for that.

As Rothschild said “the time to buy is when there is blood in the streets”

What he means is that after a huge crisis the price of everything is at its cheapest and if you have some cash available then you must take the opportunity to buy everything that you can, Goldman Sachs is simply making use of that strategy in modern times, just as many long term holders buy the dip or do DCA to increase their holdings during these times, so it should not come out as something odd they are choosing this moment to invest in several companies related to this market when many other people are doing the same.

It seems to me that if they really plan to buy the companies that were hurt by the FTX collapse, this could be bullish news in the near future. After all, there were no public announcements during the entire market crash, and here comes Goldman Sachs right away. The only thing that is not clear yet is whether we can trust this news.

AFAIK, they are already into crypto and known as an investor of it.
Honestly, if they want to invest into crypto because of blockchain. They should just focus on blockchain applications and use cases of it.

Goldman Sachs are planning to buy cryptocurrency and or offer crypto services because it’s the future of finance. Cryptocurrencies are asset classes that they can profit from. These guys are not stupid, if their clients want bitcoin then they will start to offer it.

The thing is, these older established institutions have to move with the times or risk becoming obsolete.

I do not think that Goldman Sachs will buy Bitcoin at a cheap price in order to sell it or create an exchange, but rather find an investment opportunity for that, so they will buy Bitcoin, and give users a balance in their account equal to the value of that Bitcoin, shares or any tools with a reference value of the Bitcoin that they purchased.

As others in this thread have already mentioned, Goldman Sachs is not talking about the buying what is left of FTX and Alameda to reopen it or something like that. They are talking about the fact that the bankruptcy of FTX has caused a massive crash of basically every crypto project out there and this could be a good opportunity to buy into some good crypto projects with strong fundamentals because such a project has a very high chance to pump again once the next bull market arrives.
This does not even mean that Goldman Sachs is having a positive view on cryptos or something, it just means that they maybe see a good investment opportunity here.

They are speculators and market makers, so buying crypto companies for them does not mean that they see some development in blockchain, it means that right now the purchase is justified by a good price and in the next few years they can make a good profit. In 2023, there may be a market recovery and the previous prices may not be there anymore, so big players like investment banks always buy in moments of universal fear and sell at the peak of universal hype.

They are already exposed to crypto, probably they are just waiting for this moment to accumulate more and expand their business, planning to buy a crypto company seems to be more of a serious decision since they are not just buying any specific crypto, they are planning to buy the company. Well, if this big company sees the value of crypto right now, we should be more delighted since crypto is being recognized now and for sure the future is still bright for us. We should start accumulating as well while its cheap, don’t wait for another bull before buying.

they are seeing something positive with the possible purchase. that's very simple. in business, if they see the opportunity and some are still hesitant, they will grab it. they are not newcomers in this industry, so they already know what they are getting into. at least a positive vibe for the community to know about such move by goldman sachs. if you will really think about the BTC's price today, and you are a strong supporter of crypto, you would really think that its current price is a very good opportunity to collect more, a very good deal to buy from this bearish market.

Why not?  If history has told us anything is that crypto eventually sheds all these bad apples and comes out bigger and better.  Obviously they see a bright future for crypto so why not buy now when things are on the Lowe end of value than when everything is booming.

Honestly, this must be an all new approach as far as I am concerned. After a big collapse, most whales and institutes look for only cheaper cryptocurrencies but this is first time I heard about the demand for the collapsed firm.

What are the possibilities to acquire a bankrupted firm? By googling I learned these:
1. Acquiring a firm for undervalue (not just for better price or cheaper price but far-best-price).
2. Merging a bankrupted firm is easier and got tax benefits in some countries.

Still, not sure about the exact case of Goldman Sachs and FTX but we can assume that Goldman Sachs is planning something big in crypto world by believing into the future of cryptocurrencies.

They are already into crypto from a long time and from a banks perspective they are one of the pioneers in accepting crypto in their assets.They are already one of the best banks for people who are into trading and into investing from several years but now with such move they want to consolidate and get a share from the big crypto market that there is and probably will be much more bigger than it is now with the passing of time.I see nothing wrong with this move and the reason they are looking from FTX leftovers means that most likely they want to build something of their own on top of the already existing infrastructure.

As you can see a bank like them would think a lot of times before enteringa collapsing company. It sounds like that but the article is pretty clever and some might fall under the impression that they will acquire a sinking company.

Linking to a company like ftx may sound bullish but probably Goldman Sachs are into something big related to blockchain but not with FTX of course. This could be a trigger and bullish factor in the coming years.

The answers there, it dampened the competition for it. To be perfectly fair, the fall of FTX was because of the dumb moves done by SBF, in general, imo exchanges are still and will always be a thing in the future, centralized or not. Most people just lost the idea that crypto should be stored in centralized exchanges, but it's still nonetheless functioning as an exchange imo, which is still a possible place for profit and potential growth.

I'm assuming this is for other crypto firms though, and not FTX themselves specifically. I don't think anyone would want to associate their name with FTX even after a few months have already passed.

I believe that they are just waiting for the perfect time. These entities before are always talking negative things on Bitcoin or even spreading some FUD to make Bitcoin looks bad and dump for sure, I think that's only a show so people will sell and these groups will start buying cheap Bitcoins from people who panic.

That's right. They risk with the investment in Bitcoin and speculate just like everyone else on profits. They do the same with the "normal" currencies. With cryptocurrencies, the risk is only much higher. You can also call it an additional asset class. Investing in currencies, bitcoin, gold, real estate, cars and more is just a way to invest your money and not let it destroy by inflation. If possible with the smallest risk.

As what I read also he is interested investing on crypto companies since maybe he can buy them at the cheapest price which maybe Sachs can take advantage with especially if the company has a coin/token which have a good record before and have huge community since for sure for what action he do he can hype it up and maybe he can also benefit if the coin/token price will pump up after the hype he bring after they bought the companies.

Hype can generate to money so that's a smart move for him.

They aren't buying FTX scraps! Goldman is actively exploring to get into crypto domain as they are seeing higher interest and queries from their investors regarding cryptos. Also they understand that the price is low and if they can get into the market at this time, the profitability will be higher. That's simple business!

Slowly all major investment banks will start exploring crypto market as it is gaining more and more popularity every single day!

I mean it is super smart to get in right now. They could build a billion dollar portfolio and make as much as 50 to 100 million dollars just from staking it, and then they could also make more from the amazing increase that we are going to have soon enough as well.

I know not many people could do such a thing because they do not trust bitcoin with a billion dollars but Goldman Sachs is rich enough that if their 1 billion dollars becomes zero, they would still continue operating without any problems, this comes with the issue that if they turn 1 billion into 2 billion it won't really be a big profit neither, but it's worth trying at least.

They are doing what any other financial institution should be doing, which is to explore their options and if the price is right and the risk is low then they are willing to take advantage of the opportunity in front of them, we must remember that even if many financial institutions have been against bitcoin for a long time at the end they need to attend the request and wants of their customers, and if they want to explore the possibility of investing in this market then those financial institutions have to follow their wishes.

Why wouldn’t they buy? Goldman Sachs probably owns every asset that exists to some degree. With crypto being down so much from the highs, it’s only natural that investors will move in and pick up the pieces. Being able to buy the lows and sell the highs is what investment banks pride themselves on, so seeing them nBut is a good sign they feel the end of the market pain is coming soon.