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Business

What is the relationship between Elon Musk and Sam Bankman-Fried?

garretschoenbergNovember 11, 2022
What is the relationship between Elon Musk and Sam Bankman-Fried?

In just a few weeks, the net worth of two tech industry giants has been wiped out by billions of dollars. This is partly a result of my own business decisions.

Sam Bankman-Fried, former CEO of crypto exchange FTX, reportedly had a net worth of around $24 billion in March and more recently $16 billion on November 7. It is no longer eligible to be listed on the Bloomberg Billionaires Index. Some reports say SBF could face serious financial difficulties in the coming days, as he has stakes in cryptocurrency and stock trading platform Robinhood, FTX companies, and Alameda. suggests.

Many of the ripple effects from FTX’s liquidity issues spread across the crypto space within a week. Bankman-Fried said in his since-deleted tweet on Nov. 7 that he said FTX’s “assets are fine” and dismissed many reports about the company’s liquidity as “hoaxes.” He then announced that FTX was working on a potential deal with Binance to address the “liquidity crisis”, but within 48 hours the trade collapsed.SBF resigned, two days later. Shortly thereafter, he announced that FTX had filed for bankruptcy in the United States.

“FTX joins the ranks of the notorious centralized cryptocurrency entities that have failed in this cycle as they have gained enormous freedom not only over their customers’ money, but also over ethics, integrity and the very ideals of cryptocurrency. Ant Paloan, CEO and executive director of cryptocurrency hedge fund ARK36, told Cointelegraph. “We hope that both the industry as a whole and individual cryptocurrency users can learn and grow from this experience.”

In contrast, Elon Musk, the CEO of Tesla and still the richest man in the world, has been hinting for months about buying the social media platform Twitter, and many believe that this billion-dollar I’m guessing the millionaire never intended to carry out the acquisition. Musk bought the company for his $44 billion when the deal was reached in October. Estimates suggest he may owe about $1 billion in interest annually.

Musk had a net worth of over $300 billion before acquiring Twitter in October 2021. Around the same time, the price of Tesla shares he hit an all-time high of $407.36 in November 2021. The Bloomberg Billionaires Index shows that in roughly a year the Tesla CEO lost more than $86 billion of his, and his reported net worth dropped to $184 billion at the time of going public.

Related: More Billionaires Turn to Cryptocurrencies Over Fiat Inflation Concerns

Twitter’s new leader has already implemented a controversial set of policies that have many in the business world questioning Musk’s insight. He fired a number of executives in his first week on the job, including many members of his Twitter content moderation team. The platform saw a spike in tweets containing hate speeches, with reports that revenue from advertisers could be jeopardized.

One of the business decisions that could put Twitter at financial risk was moving the platform to a subscription model. This means charging users for the “verified” blue check mark instead of only distributing according to the application process. With this system, many accounts impersonating legitimate companies and individuals, such as Nintendo of America, video game publisher his Valve, President of the United States his Joe Biden, etc., get blue checkmarks. became.

“Elon Musk’s failed term on Twitter is a great example of how to fend off authoritarian attempts.” Said Max Berger, co-founder of activist group IfNotNow. “He lost the critical support he needed from the pillars of support (advertisers, workers, users).