The crypto sector is facing multiple changes within its ecosystem. The reactions of industry players show wide differences and inequalities.
Solidarity as first aid in the cryptosphere
Faced with the fall of cryptocurrencies and the increasing number of bankruptcies, the crypto sector is looking for multiple ways to sustain itself. For some, liquidation and then closure remains the final solution. However, other actors prefer to opt for solidarity.
Sam Bankman-Fried, the founder of the FTX exchange platform, is its main representative. At the beginning of the crypto winter, the entrepreneur was one of the first to offer to buy out failing companies. An act that is reminiscent of what he announced last spring: the intention to put his money at the service of the poorest.
Unfortunately, the initiative is not always successful. SBF was indeed approached to buy Celsius Network, but the project was cut short. While many media reported the news, the latter was denied by the entrepreneur. It appears that the acquisition of the company was considered before it was shut down. Also note that only the least risky and endangered companies seem to be bought by Sam Bankman-Fried.
Businesses are generally not in trouble, although some smaller crypto exchanges may still fail […] Other big players have yet to fall.
Excerpt from Sam Bankman-Fried’s comments during an interview for Reuters
Sometimes goodwill is not enough
Aside from the sheer kindness of some great CEOs in the industry, sometimes companies know how to stick together. This was the case with crypto exchanges 2gether and Bit2Me, both from Spain. The first closed access to all its services in a very brutal way. Customers then saw their money locked up overnight. They then received an email warning them of the platform’s closure for maintenance. Meanwhile, Bit2Me has disappeared from social networks and is taxing its customers under the guise of management fees.
Faced with the dissatisfaction of users, the Bit2Me firm decided to join in to resolve the situation. She then suggested to 2gether to join forces so that customers could come and trade on her platform. All without waiting for compensation, waiting for the situation to improve. However, according to Bit2Me, the deals never went through.
Bit2Me, the first company to be recognized by the Bank of Spain as a provider of virtual currency services, announced Tuesday, July 19 that it will not be able to execute the agreement with the 2gether exchange, allowing 2gether customers to continue trading cryptocurrencies on Bit2Me. due to blocks generated by some of 2gether’s partners.
Excerpt from the Bit2Me press release detailing the termination of the agreements with 2gether . will be confirmed
Competitiveness in the sector is also starting to expand
It also happens that behind solidarity some dark designs are hidden. Indeed, buying companies like Sam Bankman-Fried can also be seen as a desire to expand. By being generous with other crypto companies, the entrepreneur moves slowly and surely to knock out the competition. The founder of FTX could then be at the head of a veritable empire. He would then become one of the actors monopolizing the industry.
However, the task is not easy: the companies in question must be kept afloat and the funds must be recovered. SBF is currently looking for new investors to supplement its fund. The goal is simple: invest in projects and revalue FTX.
Amid this wave of glory sweeping crypto’s great CEOs, the profiteer’s palm goes to Binance. When the platform stands out by flying over the crisis with alarming ease, it puts panic on its side to gain ground. The rivalry with Coinbase has become a theater without limits.
Indeed, the company has recently overtaken its competitor in Bitcoin ownership. Despite its popularity, Coinbase is often referred to as a platform victim of the crisis. The stock market plummeted and the affiliate program was discontinued, suggesting impending bankruptcy. Faced with this, Binance opened its own affiliate program. Similar to the one offered by Coinbase, this one seems to have been created to recover the fallen and disappointed affiliates of the platform with the blue logo.
While heads continue to roll in the crypto world despite a marked improvement in the situation, competition and solidarity, although rarer, should continue to rage.
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