In a letter to his employees, Sam Bankman-Fried announced that FTX will hold a fundraiser next week, aimed at saving the cryptocurrency exchange. According to him, this would allow them “to have enough money to cover all needs. “
FTX is about to raise funds
Is this a last ditch effort or a real rescue attempt? Sam Bankman-Fried, CEO of FTX, finally spoke out after several days of silence in a letter to his employees. We learn a little more about the platform’s short-term priorities.
First of all, it should be noted that this letter was revealed by an employee himself, then shared on Twitter by a well-known figure in our ecosystem answering to the pseudonym Cobie. He confirms that the letter has been verified and confirmed by several sources. Here it is:
A msg from SBF on FTX slack that got leaked to me by some telegram anon, have verified its real w another pic.twitter.com/XMjIM9nSkx
– Cobie (@cobie) November 10, 2022
The day after Binance refused to buy FTX and two days after appealing to a few Wall Street billionaires, Sam Bankman-Fried is again looking to raise funds to save his company. According to him, this one is in preparation and should be held next week.
According to Sam Bankman-Fried, FTX’s number one priority is to “be fair to users”. After that come the employees and investors. But that’s “only after the users”, he insists. Ironic, considering the manipulation of user funds by Alameda Research and FTX.
Still, he doesn’t fail to put himself on the list of people to save, “in a hypothetical world where everything goes perfectly and everyone does everything right, maybe I as an investor come in fourth and last.
Who to buy FTX?
Before mentioning the potential participants in this fundraising, Sam Bankman-Fried wanted to send a message to his (ex-)main competitor, Changpeng Zhao. He seems to be resentful of the cancelled buyout, assuming that Binance “never really planned to go through with the deal”.
FTX is said to be facing an $8 billion cash hole and needs $4 billion to remain solvent. This explains why the company is trying to find last-minute financing in the form of debt, equity or a combination of both.
Sam Bankman-Fried also mentions advanced discussions with Justin Sun, founder of Tron (TRX). Earlier today we reported on Cryptoast that Sun was actively working with FTX to try and offer an exit route for holders of TRX, HT and other tokens in the Tron ecosystem.
Finally, we learn that Sam Bankman-Fried plans to deliver a detailed explanation of what happened and what went wrong in the coming days, as well as more information on the cryptocurrency exchange’s future strategy.
Of course, despite these announcements, there is every reason to believe that this fundraiser will come to nothing. Confidence in FTX and its CEO seems to be definitely lost and the hole to fill is far too big.
However, we at Cryptoast will continue to keep you informed of all the news related to this affair, which is sure to leave a deep and lasting mark on our ecosystem.
