According to Sam Bankman-Fried, some Bitcoin exchanges are insolvent

[bbc.reporter]

@stompix. Yes I am also very skeptical on what Sam's real agenda might be. Everyone should know that he is one of the largest donators to the democratic party in America. I speculate that he would be one of the first people who politicians will consult with in creating laws in regulating the cryptospace. He will certainly use this to gain an advantage against his competitors.

[bbc.reporter]

News update.

Who is insolvent? Why is Sam Bankman-Fried asking for more funding? Is his exchange also insolvent? I am becoming very skeptical about the safety on trading in FTX. However, this fundraising might also be used by Sam to buy equity into other cryptocompanies that have problems in their cashflow.

The skeptical me is thinking FTX is also insolvent but the optimistic me speculates that Sam is taking leveraged bets on the cryptospace because the worst of this bear market is finished.



Bankman-Fried's Crypto Exchange FTX Is In Talks to Raise Funds After Buying Spree

Crypto exchange FTX, co-founded by billionaire Sam Bankman-Fried, is in talks to raise fresh funding after carrying out a shopping spree during the recent digital-assets market rout.

FTX and its American entity FTX US are both fundraising, according to people familiar with the matter who aren’t authorized to discuss ongoing discussions. FTX is targeting a round at essentially the same valuation as its January fundraising, the people said. In January, FTX announced it raised $400 million at $32 billion valuation, while FTX US raised a separate $400 million at an $8 billion valuation.

A spokesperson for FTX declined to comment when asked about the talks.

Source https://finance.yahoo.com/news/bankman-frieds-crypto-exchange-ftx-133929689.html

[Fundamentals Of]

News update.

Who is insolvent? Why is Sam Bankman-Fried asking for more funding? Is his exchange also insolvent? I am becoming very skeptical about the safety on trading in FTX. However, this fundraising might also be used by Sam to buy equity into other cryptocompanies that have problems in their cashflow.

The skeptical me is thinking FTX is also insolvent but the optimistic me speculates that Sam is taking leveraged bets on the cryptospace because the worst of this bear market is finished.

It is possible that FTX is also facing difficulties right now because of the bearish market but I don't think it is insolvent. That seems an ungrounded fear. It is hard to find logic in the fact that the company of the man who is committing a billion to help other crypto companies survive this crypto winter is the one that is actually facing insolvency. That's ironic and illogical.

So it's still safe to trade with FTX in this context. But not in terms of 'not your keys not your coins' standard.

[stompix]

Every time I see that picture on a topic about insolvency I think of some guy laughing while carrying an axe behind his back.
In some context, that picture is really creepy.

FTX and its American entity FTX US are both fundraising, according to people familiar with the matter who aren’t authorized to discuss ongoing discussions. FTX is targeting a round at essentially the same valuation as its January fundraising, the people said. In January, FTX announced it raised $400 million at $32 billion valuation, while FTX US raised a separate $400 million at an $8 billion valuation.

Fundraising doesn't mean he is insolvent or he is out of money, maybe he wants to play it safe by risking less of his wealth and more of the investor's money or maybe he is just using his personal funds for other deals behind the scene.
Anyhow, that 32 billion evaluation is just crazy, a lot of vaporware there,  and also, just funny, who is editing those Wikipedia texts?

FTX was founded for the purpose of generating as much wealth as possible to be used for charitable causes following the earning to give principle of effective altruism.[8]

[bbc.reporter]

@stompix. He also has a picture eating a raw unsliced cucumber hehehehe. He is a vegan. I do not know how a vegan can become fat like him, however.

I reckon one of those charitable causes is donating money they earn to the Democratic party hehe. According to some articles, Sam was one of the largest donors to Biden's presidential bid and the Democratic party.