SBF hints FTX could potentially create its own stablecoin News ▸ FTX ▸ Stablecoins
SBF hints FTX could potentially create its own stablecoin
FTX founder Sam Bankman-Fried said that the Second Great Stablecoin War had begun following Binance-backed BUSD's supply growth.
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Updated: Oct. 27, 2022 at 1:46 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
FTX founder Sam Bankman-Fried hinted that the exchange could create its stablecoin in the “not too distant future” in an Oct. 27 interview with The Big Whale.
🔴 SCOOP@SBF_FTX told @TheBigWhale_ that @FTX_Official is working on their stablecoin
Video 👇 pic.twitter.com/hjVscUl50Q
— The Big Whale 🐳 (@TheBigWhale_) October 27, 2022
According to SBF, the exchange certainly could launch a stablecoin. However, he added that:
“The firm holding off on doing it because I think to some extent collaboration on that can be really powerful. And a lot of that ends with us trying to find the partners we’d be really excited to work with. But I think you’ll probably be hearing something from us on that topic in the not-too-distant future.”
FTX is one of the major crypto exchanges without its stablecoin. Bankman-Fried highlighted this in a recent tweet where he stated that the Second Great Stablecoin War had begun after Binance-backed BUSD supply began to grow.
SBF continued that the stablecoins now generate more revenue with positive interest rates and that issuers have realized the importance of allowing redemption to maintain their stablecoin’s stability.
2) What's different this time is:
a) positive interest rates –> more revenue for stablecoins
b) by now they've all learned the core lesson: NEVER EVER BLOCK REDEMPTIONS or your stablecoin will no longer be stable
— SBF (@SBF_FTX) October 23, 2022
The crypto billionaire added:
“It’ll be interesting to see what emerges from the non-fiat-backed-stablecoin space, post-Luna, and post-DAI-holding-USDC.”
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Posted In: FTX, Stablecoins
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
BUSD is a stablecoin issued by Paxos in partnership with Binance..
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.