A 29-year old crypto billionaire has Goldman, CME Group in his crosshairs as his exchange aims to surpass Coinbase

2 weeks ago 7

Should Goldman Sachs CEO David Solomon beryllium quaking successful his boots?

That is the feeling that 1 mightiness glean from Sam Bankman-Fried arsenic helium explains, successful an interview with the Financial Times, that fiscal giants similar Goldman Sachs GS, -0.85% and speech level CME Group CME, -0.19% whitethorn beryllium aboriginal acquisition targets for his comparatively upstart crypto speech FTX.

Bankman-Fried told the FT, successful a caller interview, that his exchange, considered by immoderate to beryllium 1 of the fastest-growing integer platforms, wants to overtake Binance and Coinbase Global COIN, -4.36%, the No. 1 and 2 largest cryto platforms successful the world.

Then…watch retired Goldman and CME.

“If we are the biggest exchange, [buying Goldman Sachs and CME] is not retired of the question astatine all,” Bankman-Fried was quoted by the FT saying.

If Bankman-Fried comes disconnected arsenic superbly ambitious, it is, perhaps, for a bully reason.

The 29-year old, who is simply a U.S. national but resides successful Hong Kong, is reportedly a postgraduate of Massachusetts Institute of Technology, who boasts a nett worthy of $8.7 billion, according to Forbes. Forbes says that bulk of his wealthiness is derived from his involvement successful FTX, which helium launched a fewer years ago, arsenic good arsenic crypto token ownership, similar bitcoin BTCUSD, +1.02% and Ether ETHUSD, +2.83% connected the Ethereum blockchain, for example. He besides launched Alameda Research, the quantitative crypto trading steadfast helium founded successful 2017, which looks aft $2.5 billion.

Bankman-Fried is aiming for a valuation of $20 cardinal for FTX, successful his astir caller backing round, according to the FT. FTX, a cryptocurrency unicorn that offers derivative trading services with offices successful Hong Kong and the U.S., is the fourth-largest planetary crypto exchange, according to CoinMarketCap.com.

Even still, Goldman’s worth is $127 billion, portion CME Group’s is $75 billion, arsenic of Wednesday midday trade.

Coinbase, meanwhile, has a marketplace capitalization of astir $50 billion, if Bankman-Fried would see lowering his sights. Coinbase went nationalist backmost successful April but has seen a pugnacious roadworthy arsenic a publically traded institution frankincense far.

Coinbase shares are down 28% implicit the past 3 months, performing amended than bitcoin, which is down 48% implicit the aforesaid period. However, accepted assets are faring acold amended than their turbulent crypto counterparts successful caller months, by comparison.

The Dow Jones Industrial Average DJIA, +0.13% is looking astatine a summation of much than 3% successful the three-month period, the S&P 500 scale SPX, +0.21% and Nasdaq Composite COMP, +0.01% indexes are some up astir 6% implicit the aforesaid period.

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