ZoneBitcoin EditorialHis name is Sam Bankman-Fried and at 30 he is already a billionaire. Forbes magazine has estimated his fortune at $24 million. A nice jackpot that Bankman-Fried generated thanks to FTX Trading Limited, one of the main cryptocurrency exchanges in the world.
But beyond his crypto fortune, Sam Bankman-Fried is best known for having declared that he wants to donate (almost) all of his millions to charity. It is also his “philanthropy” that has made him so popular with the crypto community.
True philanthropist or communications genius? This is what we will try to unravel in this portrait.
What is Sam Bankman Fried's background?
Sam Bankman-Fried was born in Stanford, California, on March 6, 1992. The child of two university law professors, he became interested very early in the so-calledutilitarianism. Worn by Jeremy bentham, this philosophical current believes that the best action is that which produces the greatest happiness for the greatest number of individuals possible.
A philosophy which, as we will see, largely influenced his positions once he became a crypto-millionaire. You will understand this at the end of the article.
After studying physics and mathematics at MIT (Massachusetts Institute of Technology), where he graduated in 2014, Sam landed his first job at Jane Street Capital, an exchange-traded investment fund (ETF) company. He will stay there until 2017.
He then worked briefly as director of a non-profit organization, the Center for Effective Altruism. Then the young man started investing in cryptocurrencies. He founded Alameda Research that same year even though he had no idea how digital currencies were valued or how they worked.
This is what he has stated numerous times in the various interviews he has given.
Crypto-enthusiast or simple opportunist?
In April 2019, Bankman-Fried founds FTX, a company that operates over a billion transactions every day. But above all, it allowed him to amass a colossal fortune in just a few years. FTX has indeed experienced stellar growth thanks to investment from venture capital companies like Tiger Global, Sequoia Capital and BlackRock.
That didn't stop it from handling daily transactions worth 25 million bitcoins just a few months after its creation! Add that since 2019, Bitcoin has seen its value increase and bam, you have the jackpot.
Concretely, he became rich overnight with the FTX exchange platform. Very quickly, many influencers and numerous media outlets promoted this platform. The mayonnaise set very quickly!
A success which can be reminiscent of that of Binance for example. In just 2 years, trading platforms have made their founders multi-millionaires. Indeed, with the trading volume and commission fees, they have created the ultimate juicy business.
A very “light” and assumed knowledge of cryptos
On more than one occasion, Bankman-Fried said he doesn't really trust cryptocurrencies. He even added that he would stop investing in crypto if he found a safer and more convenient alternative.
A position that some could describe as ungrateful when we consider thathe owes his entire fortune to Bitcoin. HASToday, Bankman-Fried is one of the richest people in the world, and the American branch of FTX was recently valued at over $40 billion!
By the way, recently he said that "bitcoin is not a payment system". He doesn't know about the Lighting network maybe...😳 He may not know how the emerging countries use Bitcoin…? Or maybe he likes to be talked about. And, nothing better than good sentences like this to brighten up the media…
A fortune of 24 billion of which he only intends to keep 1%
Remember Bankman-Fried's attraction to utilitarian philosophy? Claiming to be part of what is called the "effective altruism ", our crypto-millionaire found the opportunity to put it into practice in declaring that he wanted to donate his entire fortune to charitable organizations. He would only keep the 1% that would allow him to live comfortably.
Sam is a simple man, who drives a Toyota Corolla and who does not want to acquire yacht (according to a recent interview he gave to Bloomberg).
We all know the saying that money can't buy happiness. But in fact, it seems quite difficult for the crypto-millionaire to part with his fortune. To date, he has only donated 0,1% of his fortune. We are far from the 99% expected!
Some do not hesitate to describe it as one of the least charitable billionaires on the planet. An attack which Bankman-Fried defends weakly, explaining that they consider the donation of his jackpot as a long-term objective... When he has upgraded his Toyota for a Mercedes (FTX is the sponsor of the Mercedes team in Formula 1) maybe ?
Bloomberg reminds him that he gave less to charity than he spent to rename the Miami Heat arena (totaling $135 million). Or to broadcast an advertisement for the Super Bowl, a spot in which comedian Larry David plays a crypto skeptic (a modest fee of $30 million). But Sam Bankman-Fried doesn't see the inconsistency. According to him, he invests to maximize the fortune he plans to donate...
Actions that contradict his words
The way his peers describe him is also confusing.
For some people, he's a kind of capitalist monk, who works so much that he doesn't even have time to take a shower. It is also said that he has decided to remain single because he simply does not have time for a romantic relationship. And even that he only sleeps 4 hours a night, considering sleep an unnecessary luxury.
Maybe again he wants to cultivate a colorful character?
On the other hand, and even if he continues to live in a shared apartment, he still shares a penthouse in the most beautiful hotel in Nassau, the capital of the Bahamas where he settled (a tax haven, remember). Finally, there is not only Dubai which attracts crypto-millionaires! And, in a few years, islands like Satoshis-Island will certainly be the place of all migrations…
To those who feel that the crypto industry might seem like an odd choice for a do-gooder, Bankman-Fried says he doesn't see the market that way.
He points out that FTX checks the background of its clients, buys carbon credits to offset its emissions and is more efficient than the traditional financial system. However, he does not hide the fact that his main attraction for cryptocurrencies is the opportunity they offer him to get rich quickly…
The FTX to the moon platform…
And it's a safe bet that his fortune will continue to grow. FTX is in fact growing faster than most of its competitors, starting with Binance. Although today it is only the 3rd main global exchange, iIt still manages daily transactions of more than 15 billion dollars.
Bankman-Fried also set its sights on the American market, currently dominated by Coinbase Global Inc. It wants to offer futures, swaps and options and therefore capture an exponential market. Once it takes control of crypto, its next goal is to take on the traditional financial sector.
Moreover, he recently bought shares in the company Robinhood. It was originally a stock investment platform which has now opened up to cryptos.
« We are splashing around in the little bath today”, said Bankman-Fried “Ideally, I would like FTX to become the largest source of financial transactions in the world. » If he keeps his promise to donate 99% of his fortune, let's hope he reaches his goal!
Do you like discovering the profiles of crypto-millionaires? Read our portraits:
- The portrait of the youngest crypto-millionaire Erik Finman
- Who is the founder of Binance: Chang Peng Zhao (aka Cz)
- The critical founder of the EOS blockchain: Dan Larimer
- The founder of Ethereum: Vitalik Buterin
Note: No financial advice is given in this or any other article on zonebitcoin. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.
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