- Musk and Nawfal believe investors’ interests fueled FTX’s relative success.
- Opinion leaders say FTX’s relative growth didn’t neutralize the government’s attack on crypto.
- Top investors’ interests sustained FTX while the crypto exchange lasted.
Investment opinion leaders, including Tesla CEO Elon Musk and market analyst Mario Nawfal, have cited interests from top investors as the reason Sam Bankman-Fried’s fraudulent scheme lasted as long as it did. Musk highlighted the oddity of the scenario, considering Marc Andreessen’s recent submission that the government debanked 30 tech founders.
Andreessen accused the U.S. Democratic Party of attacking the crypto industry using the system. He cited activities by the past and present Democratic administrations aimed at halting cryptocurrency’s growth. Hence, his alleged debanking of tech startups, many of whom involved themselves in cryptocurrency.
Related: Marc Andreessen and Ben Armstrong Allege Democratic Plot Against Tech and Crypto
Meanwhile, the level of Bankman-Fried’s FTX exchange success before his conviction triggered curiosity among the market analysts. In an X post, Nawfal highlighted FTX’s powerful backers, citing them as reasons the now-defunct crypto exchange lasted so long and went far with its activities.
According to Nawfal, major financial institutions, including BlackRock, SoftBank, Sequoia Capital, and Tiger Global, invested hundreds of millions into the FTX platform. With these top players on the scene, FTX acquired an air of credibility and unprecedented access to traditional finance. Nawfal believes the top firms also protected the now-defunct crypto exchange until it crumbled.
Musk and Nawfal support Andreessen’s earlier statement and neutralize contradicting opinions using FTX’s relative success to argue against the establishment’s systematic clampdown on crypto. Nawfal emphasized that the firms that invested in FTX chose to protect their investment instead of scrutinizing the crypto exchange’s operations. Hence, cutting off FTX would have meant admitting failure.
Related: Authorities Accuse SBF of Diverting FTX Funds to Political Campaigns
It is worth noting that the recent analysis of the government’s interference with the crypto industry’s development comes on the backdrop of comparing the outgoing Joe Biden administration to the expected crypto-friendly government of Donald Trump. Many analysts believe the incoming Trump administration will provide a more friendly atmosphere that will promote a thriving cryptocurrency ecosystem.
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