Billionaire Founder of FTX Reveals Cryptos That Will Survive the Next Crash
There is a rumor going on that the crypto market may crash this December and on this rumor Sam Bankman who is the founder of FTX share some of his thoughts about which crypto token may survive this crash.
Who Is Sam Bankman?
In 2017, when a giant public bull run was going on Sam Bankman decided to invest in crypto. So, he got into a website that had different charges for Bitcoin. So, he checked different websites to buy Bitcoin at the lowest rate possible. Then he found a Japanese website where trading was only 5% to 15% higher than the USD which is less than what US crypto agencies were providing. Now the opportunities are smaller and the volume of crypto is more.
Backman founded FTX which is a platform built by traders for traders. Nobody has to face the problems that he did in his early days of investment in crypto so he kept the trading fees as much low as he could.
Kitco NEWS called Sam Backman to share his knowledge about the crypto market with their audience and also, he answered a lot of important questions there which are discussed in detail later on.
The rumor is that December is the last month for crypto after that the whole market will crash. Sam Bankman says that this may be the last bull run and there are always crashes and bull runs in the crypto market.
In the next few years, and institutional adaptation of cryptocurrency will increase as more and more people will invest in it. Now at this time, some large institutions are adopting cryptocurrency.
Which Crypto Will Survive The Crash?
Suppose there is a massive crash this December then the question arises which cryptos will survive this crash. Cryptos that have huge loyal followers and are important use cases are more likely to survive the crash. The cryptos about which the crash is more hyped often crash little.
Will There Be A Next Bitcoin?
According to billionaire founder Sam Bankman, Solana can be the next bitcoin of this era. Social media is very important in increasing the value of any coin. Just because Solana is being hyped on the internet lately in memes there are millions of transactions going on of Solana in a second. So, it can mean that Solana may be able to beat Bitcoin but Ethereum is also more likely to do so. There are always just predictions in the crypto market instead of actual words.
Can Solana Increase The Market Cap Of Ethereum?
Solana can increase the market cap if it keeps itself tied to adaptations that are required to follow. It is associated with other blockchains and also there is no massive institutional adaptation of Ethereum. So, at this point, it is hard to make any concrete predictions about Solana. It cannot increase because it failed to gain massive adoption on blockchain and maybe it gains other blockchain or no blockchain at all. So, it is difficult to say.
Can Solana Be Bigger For Defi Applications?
Yes! It is not very likely to happen but chances are there. It has the potential to scale where it could be huge and to host DeFi applications. DeFi is a type of transaction which is done peer to peer without agents involved. People are liking it more than the CeFi.
High Gas Fee
NFTs are revolving around a lot now and to get an NFT on the air you need to pay a lot of gas fees which Ethereum is not able to fix but Solana did it. It fixed high gas fees on low transaction rates. If Ethereum will do that it will bring down the blockchain cost. Solana has different approaches and it is easy for Solana to get several threads at a time. Also, in the case of Ethereum 2.0, there won't be an impossibility between a transaction on different charges.
How To Pick A Protocol To Invest In?
According to Sam Bankman, to choose a coin for investment, people need to be up to date with the latest memes. Memes have the potential to turn around the market. There is an example here, a few days back when Squid Game was trending on Netflix there came a squid coin as well which gave 75% profit in just a few days but later on it crashed because it was not affiliated with any blockchain. So, when investing in a coin you need to check if it is affiliated or not.
Investment is always a risk and meme coins are difficult as they are more likely to crash. So, before investing, look at the supply distribution first. Also, look for good predictors. There is a lot of people on YouTube and top social media sites who can tell about 100% profitable coins. As the interview is about to finish David asks Bankman about the partnership with WonderFi, to which Bankman gives a detailed description of how he has partnered with WonderFi on a project like crypto eco-system equities.