Crypto Billionaire Explains How To Get The Best Return On Investment In Life
If greed is good, Sam Bankman-Fried is an elite. Recently valued at over ten billion dollars, the 29-year-old founder of the FTX cryptocurrency exchange has amassed his wealth faster than anyone in modern history, even causing Facebook founder Mark Zuckerberg to , looks more like a tortoise than a hare. But Bankman-Fried’s greed is unlike any of the other richest people in the world. While his absolute goal is to get rich, the reason from day one is that he can give it his all.
Adhering to the increasingly popular philosophy of “effective altruism,” which states that evidence should point the way in which good deeds are performed, Bankman-Fried set out to methodically analyze how he could do the most. much of his life. While still in college, he briefly considered working for philanthropic causes or on Wall Street, before deciding that the best way to get a return on the investment he was about to make was. his own life was to get rich.
Speaking on a virtual stage today for the 2021 kickoff Forbes Under 30 Summit Kickoff, Bankman-Fried explained how figuring out how to make the largest possible donation for the future of humanity led him to crypto, founding one of the largest cryptocurrency exchanges and possibly to be the largest single crypto wealth store in the world. “Good is good no matter what,” said Bankman Fried, in conversation with Forbes Content Director Randall Lane. “And at the end of the day, my goal is just to figure out how I can have the most impact on the world, whatever that means.”
Effective altruism was first popularized in the late 2000s by Oxford professor Toby Ord, and entered the mainstream in 2015 with bioethicist Peter Singer’s book “The Most Good You Can Do,” published by Yale University Press. While Bankman-Fried graduated from the Massachusetts Institute of Technology in physics in 2014, he says he methodically analyzed his own life to determine whether working for a cause he believed in or starting a business was the best way to do it. more good.
A learned trader who first worked for quantitative trading firm Jane Street, Bankman-Fried became fascinated with the emerging world of cryptocurrency. Frustrated by his experience with traditional exchanges and by what he calls “nonsense” margin systems that allow people to trade by borrowing funds and lending funds to clients with “incompetent risk drivers,” he saw an opportunity to make money – lots of money – by taking a leadership position in a rapidly growing space.
“It was a small industry a few years ago, and all of a sudden it got huge and its players didn’t have to go through the same evolutionary pressure that you usually see for industries of this size and so new. Bankman-Fried said. “It seemed to me, ‘Wow, these are really central entities of crypto – much more than exchanges or traditional finance – but they just aren’t well built.’ ‘
In 2017, he founded quantitative trading firm Alameda Research, which manages $ 100 million in digital assets; FTX cryptocurrency exchange that regularly performs $ 5 billion in transactions per day; and Solana, a blockchain designed to compete with Ethereum with faster and cheaper transactions. Following a similar path forged by cryptocurrency pioneer Changpeng Zhao, aka CZ, founder and CEO of Binance, the three Bankman-Fried companies form the basis of an almost independent financial ecosystem, in which his businesses are better at. even to capture the value they create.
As a result of his work, his net worth is now estimated at $ 11.5 billion – not to mention $ 23 billion blocked by crypto to assure users that he will not flood the market – and this year he is became the richest member of the tenth. Forbes 30 Under 30, and the richest cryptocurrency billionaire known. Despite so much of his wealth locked away, he’s already starting to lay the groundwork for the eventual landing that will likely affect his favorite causes, including disease control and animal welfare. In February, he launched the nonprofit FTX foundation, which has a mandate to donate 1% of FTX’s net costs and has already allocated $ 8.9 million in donations, including $ 6 million from other donors. seeking to follow the example of Bankman-Fried.
Bankman-Fried is also establishing himself as a strategic political donor, having donated $ 5 million to a super-PAC supporting US President Joe Biden’s successful campaign for 2020. When Lane asked Bankman-Fried which initiative he was the most “Geek” about the investor-entrepreneur, he spoke of another type of efficiency: influencing the elections by supporting the candidates. “I had a lot of fun looking at politics last year, doing math and thinking about what’s impacting here? How do you rate that? Said Bankman-Fried. “I think it was surprisingly effective. And there’s more stuff we’re going to get there.