People nowadays are making a lot of money by trading in crypto currency. However, we all know that the cryptocurrency market is unpredictable. A coin pumps quickly, so it also dumps quickly. The cryptocurrency market can sometimes behave like a short-term success.
People invest money in it and also get high returns quickly. Today’s life story of Sam Bankman-Fried is also about a crypto king who became a billionaire through crypto currency in just four years and then lost it all in less than ten days.
You will learn from this biography of Sam Bankman-Fried how sudden success may sometimes lead to failure. Must read the real-life story of Sam Bankman-Fried (co-founder and former CEO of FTX Crypto Exchange).
Information about Sam Bankman-Fried
- Real Name: Sam Bankman-Fried
- Nickname: King of Crypto
- Date of Birth: March 6, 1992
- Place of Birth: Stanford, California, U.S.
- Age: 31
- Education: Graduation in Physics from MIT
- Occupation: American Entrepreneur
- Father’s name: Joseph Bankman
- Mother’s name: Barbara Fried
- Marital Status: Unmarried
Sam Bankman’s Fried Story
The crypto currency exchange FTX, which is based in the United States, was recently wiped out completely. Sam Bankman-Fried is the founder of this cryptocurrency exchange. Sam Bankman-Fried was born in Stanford, California, on March 6, 1992.
Sam grew up in an upper-middle-class family in California, the son of Stanford Law School professors Barbara Fried and Joseph Bankman. In 2014, Bankman-Fried graduated in physics from the Massachusetts Institute of Technology (MIT).
After college, Sam began working as a broker at the New York-based firm “Jane Street Capital”. He worked at Jane Street for three years and later moved to the crypto trading market and founded Alameda Research in 2017.
1.5 years after founding Alameda Research, Sam co-founded a crypto exchange called “FTX” with a former Google software engineer and one of his MIT friends, Gary Wang. Its headquarter was in the Bahamas.
Binance was the first to invest in the FTX Exchange. FTX became popular among traders as soon as it came to the crypto market, and in just 4 years, it had 1.2 million registered users. In January 2018, his team started doing 1 million dollars’ worth of work every day on FTX.
Started in 2017, FTX Exchange is set to become the world’s second-largest crypto exchange by 2022. In January 2022, the valuation of FTX was estimated at 32 billion dollars. Due to the immense growth of FTX, Sam Bankman-Fried became a multi-billionaire in just 3 to 4 years. And by November 2022, his net worth had risen to $16 billion.
- Also Read- How Much Is MrBeast Net Worth Year By Year
The beginning of the fall of FTX
FTX has its own native crypto currency token called ‘FTT,’ which is used by traders to make transactions and fee payments. In 2021, the CEO of Binance sold his stake in FTX back to Sam Bankman-Fried. In return, Binance was given ‘FTT’ tokens equal to their stake.
According to a Coindesk report in November 2022, there were lots of disturbances between Alameda Research and FTX regarding several FTT tokens. Alameda Research had a huge amount of hidden FTT tokens.
Following that, Binance sold all of their FTT token holdings. As a result, the market price of FTT began to plummet, and as the price fell, traders began selling their FTT coins.
In three days, FTX received withdrawal requests for $6 billion. FTX suddenly came into a liquidity crunch due to high withdrawal requests. FTX is not in a position to process such a large number of withdrawal requests.
After the liquidity crunch, Binance was in talks to buy FTX, but due to some conflicts, they cancelled the deal. Binance cited “corporate due diligence” as the reason for cancelling the deal. Due to this, the market for FTX fell, and the company went bankrupt.
Fall of ‘King of Crypto’ Sam Bankman-Fried
Following FTX’s bankruptcy, King of Crypto Sam Bankman-Fried’s net worth plummeted from 16 billion to 955 million dollars in just 7-8 days, Now as of 2023 his estimated net worth is only $4 Million. The value of the FTX exchange has become zero in the US market. Withdrawals have stopped in the wallets of most users trading on the FTX Exchange.
Sam Bankman-Fried, who became a billionaire in four years, went bankrupt in a few days. The collapse of FTX is a cautionary tale about the risks of investing in cryptocurrencies and the importance of sound risk management and corporate governance.
Lesson we learn from Sam Bankman’s life story
Quickly earned money can vanish fast, especially in the ever-changing crypto market. So, it’s smart to invest wisely. No one can predict when a coin might drop. Instead of chasing quick money, aim for income that lasts, even if it comes in slowly. Sometimes it’s better to be a tortoise than a rabbit.
What is Alameda Research?
Alameda Research was a quantitative cryptocurrency trading firm founded in 2017 by Sam Bankman-Fried and Tara Mac Aulay. The firm deals in a variety of digital assets, including “main crypto” coins or altcoins and their derivatives.
It also provided liquidity to cryptocurrency exchanges and helped to underwrite new cryptocurrency projects. In 2022, after the collapse of FTX, Alameda Research also filed for bankruptcy.
I hope you learned something from the life story of Sam Bankman-Fried. Follow this blog and share this story with your friends.
Note: This information is collected from various websites and may vary. (Do your own research if you have any doubts.)
Ans- He is an American entrepreneur, investor, founder, and former CEO of FTX.
Ans- His ex-girlfriend is Caroline Ellison.
Ans- After the fall of FTX and Alameda Research, his net worth is around $4 million.
Ans- He is currently 31 years old.