These Bosses Looking To Support The Crypto Ecosystem Amid The Bear Market

From Sam Bankman-Fried to Changpeng Zao (CZ) through Justin Sun, they all say they are ready to help the industry that is beset by many difficulties.

Another. It’s not just Sam Bankman-Fried, the boss of the FTX platform, and Changpeng Zao (CZ), the boss of Binance, who are mobilizing to save the cryptocurrency ecosystem amid a “bear market” (bear- market). There is also Justin Sun, the boss of the Tron blockchain.

The latter indicated on Twitter on Friday that he was also “ready” for companies in difficulty.

$5 billion

The latter said “many” companies (between 50 and 100) would have contacted him for help.

“We are actively looking at this and seeing what we can do here. […] We are ready to spend $5 billion to help builders in the industry continue to build,” Justin Sun told The Block.

Justin Sun focuses on “healthy” businesses to help, especially in the world of centralized (CeFi) and decentralized (DeFi) finance. As a reminder, many platforms in the CeFi universe have been in turmoil since the collapse of the Terra blockchain: from the Celsius company to BlockFi through Voyager Digital and Three Arrow Capital.

However, a question arises: are these $5 billion drawn from his personal fortune or from the reserves of the Tron ecosystem, which amount to $2.3 billion? It would be a mixture of the two, Justin Sun specifies.

But will he succeed in his bet? The question may arise. On the one hand, it is currently difficult to know the latter’s personal fortune. If the Bloomberg Billionaires Index, which charts the fate of the world’s 500 richest people in real time, specifies that of Sam Bankman-Fried ($9.9 billion) and CZ ($21 billion), Justin Sun is not included. . ranking.

In addition, the Tron ecosystem launched an algorithmic stablecoin, the USDD, in early May. However, since its launch, this stablecoin has lost its anchor against the dollar several times. In particular, some experts question whether this stablecoin could suffer the same fate as the stablecoin usdt (ust) of the Terra blockchain, which collapsed during the crypto crash in May.

If Justin Sun seems to be waging an ego war against the announcements of his competitors Binance and FTX, time will tell who really managed to save the industry.

“We are going to save several projects” (CZ)

As a reminder, Binance boss CZ recently said that dozens of companies have asked him to help them.

“We look at a lot of deals in the context of the liquidity crisis of the ecosystem and some of them are actually good deals. So I think you will see that we will invest, save, save several projects,” the latter said in the specialist media Decoding .

For the latter, it is preferable to buy up companies in turmoil rather than close them down. “That means users don’t lose money or hopefully lose less,” he said. At this time, no takeover announcement has been made from Binance.

A few billion in reserve (Sam Backman-Fried)

For his part, Sam Bankman-Fried, the boss of the cryptocurrency exchange platform FTX, told Reuters that he had “a few billion” (2 billion more precisely) to support troubled companies that could destabilize the global ecosystem.

The latter has already put a number of companies in the pot. For example, he provided a $250 million loan to the BlockFi lending platform and is even considering buying the company.

But some of his investments are less favourable: at the end of June, his crypto firm Alameda Research granted a $200 million credit facility to crypto broker Voyager Digital… To no avail, as Voyager Digital has since filed for bankruptcy.

As a reminder, the cryptocurrency market suffered two sharp declines in the span of a few months, one in May following the collapse of the Terra ecosystem, the other in mid-June in a context of destabilization of many platforms. as Celsius. Bitcoin, for example, is hovering around $20,000 at the time of writing and has lost 70% of its value since its November high of $69,000 last year.

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