Skybridge Capital founder Anthony Scaramucci says that FTX CEO Sam Bankman-Fried’s resolution to bail out crypto lending platform BlockFi is a sign that we could have reached the bear market’s backside.
In a brand new interview on CNBC, Scaramucci admits that the trade is going through critical challenges following information that crypto dealer Voyager Digital is suspending buying and selling, deposits and withdrawals on its platform.
“We noticed this in 1998 with the Lengthy-Time period Capital Administration disaster. We noticed it in 2008 and pay attention, there’s lots of people that have been over-leveraged within the system. They have been overzealous. There was double collateralization happening. It was nearly like Bernie Madoff bought married to Lengthy-Time period Capital Administration and so they created Celsius and so some of these things is horrible, frankly.”
Though the crypto area is at the moment coping with the fallout from extra hypothesis, Scaramucci stays optimistic of the long-term prospect of digital belongings and argues towards the concept that cryptocurrencies don’t have any inherent worth.
“The use instances [of crypto} are proliferating and there’s billions of dollars moving into the space, and of course, we haven’t got to Sam Bankman-Fried, who’s been willing to backstop the space and put up capital, so lots of smart money there…
This is just part and parcel of a long-term trend in cycle and of course we have the halving coming in February-March of 2024.”
Last week, the US arm of Bankman-Fried’s crypto exchange FTX agreed to provide a $400 million credit line to BlockFi, with an option to acquire the distressed company at a variable price of up to $240 million. Scaramucci comments on the agreement.
“A big shout out to the BlockFi people who focus on depositors first. They took a deal from Sam. It may not have protected the equity there, but it’s certainly protecting the depositors and I think in Sam’s case, he’s looking for customer acquisition, and I think he sees this as a broad opportunity to get those customers through BlockFi…
Sam stepping in here is, I think, providing the context for a bottom.”
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