FTX CEO Sam BankMan-Fried talks about cryptocurrency beyond investment

by Arthur · July 17, 2022

FTX CEO Sam Bankman-Fried identified in a Twitter thread other uses for the crypto industry apart from its use as a speculative financial investment instrument.

According to SBF, he will ignore the popular line from investors that “you can buy tokens and maybe they will go up” and focus on potential use in payments, market structure and social media.

1) For what purpose?

Some potential uses for crypto.

– SBF (@SBF_FTX) July 16, 2022

Table of Contents

payment

Regarding payment, SBF said that the dynamics of transactions have changed over time with the development of new technologies and advances.

3) Let’s start with payments, both domestically and internationally.

– SBF (@SBF_FTX) July 16, 2022

According to his statement, payments are difficult, slow and expensive as it can take several days or months before certain transactions are confirmed using the traditional financial systems due to the challenges of the process.

However, all of these problems are eliminated with crypto as “blockchains allow anyone to create a wallet and use it to send and receive tokens – including USD-denominated stack coins.”

He added that payments are processed in seconds, and that they often “cost fractions of a penny.”

Market structures

On the market structure, SBF said that the traditional markets risk being overwhelmed by transactions. He cited the example of January 28, 2021, when retail interest in Gamestop, AMC and meme coins increased exponentially.

17) Ok, so what about the market structure?

January 28, 2021, most major retail brokers shut down.

Users were not able to buy; sometimes they also failed to sell. And on some platforms, users were liquidated.

The strange thing is that in the beginning there was no influence!

– SBF (@SBF_FTX) July 16, 2022

The presence of several intermediaries in the transaction process led to a high “settlement risk” which forced these brokerages to close their services to deal with the situation.

As a result, users could not buy or sell their assets, while they were liquidated and lost money in the process.

SBF is of the opinion that crypto contributes to solving these problems in the market structure because it “can create simpler, fairer and less risky market structure and settlement.”

Social Media

The FTX CEO noted that the core problem for social media networks is their isolation.

28) So what about social media?

Right now, if you tweet something and your friend pulls out Facebook, they can not see your tweet.

Social media networks are isolated, not interoperable.

– SBF (@SBF_FTX) July 16, 2022

According to his tweet, users of a social media platform can not see what their friends are posting on other social media.

In his words,

Right now, if you tweet something and your friend pulls out Facebook, they can not see your tweet.

But with blockchain technology, this may change as platforms become more interoperable. He claimed that if social media networks use public blockchains, one user can send a message on Facebook and another user can see the same message on Twitter.

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