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FTX CEO Sam BankMan-Fried Speaks on Crypto Uses Beyond Investment

2 mins
Updated by Ryan Boltman
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In Brief

  • FTX CEO Sam Bankman-Fried says crypto as more use beyond investments.
  • SBF tweeted about opportunities in payment, market structure, and social media.
  • According to him, blockchain technology could solve the majority of the issues in the space in a timely, efficient, and cost-effective manner.
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The Chief Executive Officer of FTX, Sam Bankman-Fried in a Twitter thread identified other use-cases for the crypto industry apart from its use as a speculative financial investment instrument.

According to SBF, he is going to ignore the popular line from investors that “you can buy tokens and maybe they’ll go up” and focus on its potential use in payments, market structure, and social media.

Payment

Speaking on payment, SBF said the dynamics of transactions have changed over time with the developments of new technologies and advancements.

Per his statement, payments are hard, slow, and costly since it could take several days or months before certain transactions are confirmed using the traditional finance systems because of the challenges present in the process.

However, all of these issues are eliminated with crypto as “blockchains allow anyone to create a wallet and use it to send and receive tokens–including USD pegged stablecoins.”

He added that payments are processed within seconds and they often “cost fractions of a penny.”

Market Structures

On the market structure, SBF said the traditional markets run the risk of being overwhelmed by transactions. He cited the example of January 28th, 2021, when retail interest in Gamestop, AMC, and meme coins rose exponentially.

The presence of several intermediaries in the transaction process led to a high “settlement risk” forcing these brokerages to shut their services to manage the situation.

As a result, users could not buy or sell their assets, while there were those who got liquidated and lost money in the process.

SBF is of the opinion that crypto helps to solve these problems in market structure because it “can create simpler, more equitable, and less risky market structure and settlement.”

Social Media

The FTX chief noted that the core problem facing social media networks is their isolation.

According to his tweet, users of one social media platform are unable to see what their friends post on other social media sites.

In his words,

Right now, if you tweet something, and your friend pulls out Facebook, they can’t see your tweet.

But with blockchain technology, this could change as the platforms become more interoperable. He argued that if social media networks adopt public blockchains, a user can send a message on Facebook and another user can see the same message on Twitter.

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Oluwapelumi Adejumo
Oluwapelumi believes Bitcoin and blockchain technology have the potential to change the world for the better. He is an avid reader and began writing about crypto in 2020.
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