FTX CEO provides some examples of the use of non-investment crypto

Many people see crypto as just a speculative investment instrument, but according to FTX CEO Sam Bankman-Fried, digital assets can be used in a thousand and one ways. Here are some examples.

Instead of buying tokens in the hope that their prices will rise, Sam Bankman-Fried has called its supporters to focus on the potential uses of crypto in payments, market structure and social networks.

Crypto payments

In terms of payments, SBF pointed out that the dynamics of transactions have changed over time, especially with innovation and the development of new technologies.

According to him, payments are difficult, slow and expensive, and traditional financial systems can take several days or months to validate certain transactions. A problem that he explains with the complexity of the processes in traditional institutions.

But all of these problems can be eliminated with crypto, as “blockchains allow anyone to create a wallet and use it to send and receive tokens, including USD-backed stack coins.”

The FTX chief clarified that cryptocurrencies are processed in seconds and “often cost less than a penny”.

Use of crypto in market structuring

According to Sam Bankman-Fried, traditional markets risk being overwhelmed by transactions. He cited the example from January 28, 2021, where retail investors’ interest in Gamestop, AMC and meme coins increased exponentially.

The presence of several intermediaries in the transaction process resulted in high “settlement risk”, forcing these brokerage firms to suspend their services to deal with the situation.

As a result, users could neither buy nor sell their assets, while some saw their positions liquidated or lost their funds.

SBF believes that crypto helps solve these market structure problems because it “can create a simpler, fairer and less risky market structure and settlement method.”

Social network

The CEO of FTX believes that isolation is the biggest problem for social networks.

In his tweet, he explained that users of a social media platform cannot see what their friends are posting on other platforms of the same type.

“Right now, if you tweet something and your friend is on Facebook, they can’t see your tweet.”

Blockchain technology can change the situation by making platforms more interoperable, the SBF pointed out. According to him, if social networks adopt public blockchains, a user can send a message on Facebook and his friend can see the same message on Twitter.

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