Who Is Sam Bankman-Fried – Wiki, Bio, Net Worth, FTX

Sam Bankman-Fried.
Courtesy of Sam Bankman-Fried’s LinkedIn profile.

 

Who Is Sam Bankman-Fried?

Sam Bankman-Fried is an American cryptocurrency investor, trader, philanthropist, and internet entrepreneur who is based in Hong Kong. He is most known as a co-founder of the FTX cryptocurrency derivatives exchange. He is also a co-founder and the CEO of crypto trading firm Alameda Research.

As a philanthropist, Bankman-Fried is a member of Giving What We Can – an organization whose members have pledged to donate at least 10% of their income to effective charities.

Bankman-Fried donated a total of $5.2 million to US President Joe Biden’s 2020 presidential campaign. His donation was the second largest behind that of former New York Mayor Michael Bloomberg, who gifted $56 million in total.

Bankman-Fried’s FTX Foundation donates 1% of all net fees to the world’s most effective charities.

This wiki-style breakdown will go over over Bankman-Fried’s bio, background, net worth, and crypto endeavors.

 

Sam Bankman-Fried Wiki-Style Biography And Background

Sam Bankman-Fried’s LinkedIn profile states that he graduated from the Massachusetts Institute of Technology with a degree in physics in 2014.

Between June 2014 and September 2017, Bankman-Fried worked as a Trader at liquidity provider company Jane Street.

In November 2017, Bankman-Fried co-founded liquidity provider and trading firm Alameda Research. In a May 2021 interview with Forbes, Bankman-Fried told about the motivation behind Alameda:

The first business was Alameda, a crypto quantum trading firm. We saw that crypto was exhibiting all the signs that there would be a lot of demand for liquidity but with very little liquidity available. Everyone on the street was talking about crypto during that time. We were seeing huge price movements and inflows which clearly pointed to a lot of people from many different countries trying to buy many different varieties of crypto currencies using different acquisition methods. Despite how big it had become, it still had only been a few months. This meant that there had not been enough time for most of the buyers globally to onboard into the crypto ecosystem.

In April 2019, Bankman-Fried co-founded the FTX cryptocurrency derivatives exchange. He told Forbes in regard to the founding of FTX:

. . . A year later we started to build out FTX. When I started in crypto exchanges, if you wanted to buy Apple AAPL, an average user would buy from somewhere like Robinhood where it would then change hands through clearing firms and other institutions. In late 2018, the current platforms were a total mess. They were losing an average of a million dollars a day to customer assets due to not having any functional retention.

 

. . . I thought we could do better. I wanted to incorporate the buyer, the seller, and the exchange. So we launched FTX in spring of 2019 and built it from nothing to where it sits today as the fourth largest global crypto currency exchange based outside of China. 

 

Sam Bankman-Fried’s FTX Exchange

FTX homepage.
Courtesy of FTX.com.

 

FTX is a cryptocurrency derivatives exchange that allows users to trade spot, futures, stock, leverage tokens, and NFTs (Non-Fungible Tokens), among other things.

The mission of FTX is as follows:

FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products and leveraged tokens. We strive to develop a platform robust enough for professional trading firms and intuitive enough for first-time users.

The FTX derivatives exchange’s native token is FTT. FTT features a number of incentive schemes. Among other things, holders of the FTT token get fee rebates, as listed in the table below:

FTX fee rebates for FTT holders.
Courtesy of FTX.com.

 

FTT holders additionally receive weekly airdrops of SRM, which is the token of the Serum ecosystem (also founded by Bankman-Fried). SRM is based on the Solana blockchain.

FTT may also be staked for rewards. FTT holders who choose to stake their tokens receive several benefits, including:

  • Bonus votes in polls.
  • Increased SRM airdrop rewards.
  • Waived blockchain fees on a number of ERC20 and ETH withdrawals per day.

According to Nikkei Asia, FTX saw trading volumes of over $400 billion in April 2021 – a twentyfold increase from April 2020.

In May 2021, The Block reported that FTX was expected to reach a valuation of around $20 billion after a $1 billion funding round.

FTT’s price was under $5 for all of 2020, before exploding above $30 in spring 2021, and hitting $60 in May 2021.

FTT price.
Courtesy of CoinMarketCap.com.

 

Sam Bankman-Fried Net Worth

According to Forbes, Sam Bankman-Fried’s net worth was $8.7 billion as of May 2021. This made him the 274th richest person in the world. Forbes specifies that the vast majority of Bankman-Fried’s wealth is in FTX equity and FTT tokens.

In February 2021, Bankman-Fried was the second richest known entrepreneur in the cryptocurrency space after Brian Armstrong, according to Forbes. At the time, Bankman-Fried’s net worth was $4.5 billion, while Armstrong’s worth was $6.5 billion.

 

Online Presence And Publicity

Sam Bankman-Fried is present on Twitter and LinkedIn.

In 2021, Cointelegraph named Bankman-Fried the third most notable figure in the blockchain industry after Andre Cronje (#2) and “All of us” (#1). Cointelegraph’s list includes other prominent individuals such as Kraken founder Jesse Powell, Bitcoin Stock-to-Flow model creator PlanB, Polkadot co-founder Gavin Wood, and Chainlink co-founder Sergey Nazarov.

Bankman-Fried has been featured in major online publications such as Business Insider and Vox. He has been interviewed by Anthony Pompliano and Raoul Pal’s Real Vision and UpOnly TV’s CryptoCobain as well.

 

 

Related Posts:

Kraken Founder Jesse Powell

Voyager’s Steve Ehrlich

Hayden Adams And Uniswap