Friday, March 1, 2024

Alameda And SBF Join Forces To Prevent Further Crypto Collapse

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Alameda and SBF – Sam Bankman Fried join forces to prevent further crypto collapse and rejected rumors that the former had a part in jeopardizing the stability of the Celsius Network so let’s read more today in our latest cryptocurrency news.

SBF added:

“We want to help those we can in the ecosystem, and have no interest in hurting them.”

Alameda and SBF are stepping up to prevent further contagion across the crypto markets while the bears are in control. Plenty of crypto companies are facing liquidity issues as a result of the strong market downturn in 2022 and most major companies like Three Arrows Capital and Celsius are on the bring of insolvency and can bring others down with them if they collapse. In an interview with NRP on Sunday, SBF added that with the statute of his companies, Alameda and FTX he thinks they have a responsibility to consider stepping in even if it causes losses for them:

“Even if we weren’t the ones who caused it, or weren’t involved in it. I think that’s what’s healthy for the ecosystem, and I want to do what can help it grow and thrive.”

SBF added that his companies have already done this a number of times in the past as he pointed to FTX providing Japanese exchange Liquid with $120 million in financing and FTX also announced more plans to acquire Liquid after providing it with funding in March:

“We, I think about 24 hours later, stepped in and gave them a pretty broad line of credit to be able to cover all of their demands, to make sure customers were made whole while thinking about the longer-term solution.”

Crypto brokerage Voyager Digital announced that Alameda agreed to give the company a 200 million USDC loan and a revolving line of credit as well that was worth $298 million. Voyager Digital noted that the credit facilities offered by Alameda will expire on December 31, 2024, and will have an annual interest rate of 5% payable on the maturity. The company stated that it will use these credit lines if needed to protect the customer assets:

“The proceeds of the credit facility are intended to be used to safeguard customer assets in light of current market volatility and only if such use is needed.”

Alameda Research Led, stacked, app, trading

While SBF outlined many good intentions to help the suffering crypto companies, rumors surfaced this month that Alameda played a huge part in the instability of Celsius. Analysts like PlanC suggested to their followers that Alameda conducted a 50,000-staked Ether sell-off in a bid to depeg the price from Ether and to jeopardize a bigger stETH position that is held by Celsius as it will stop the company from exchanging the asset.

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