FTX's April trading volume reaches 400 billion, Bloomberg interviews SBF on Dogecoin, Bitcoin, and IPOs.

According to a Bloomberg report, cryptocurrency exchange FTX had a trading volume of over $400 billion in April 2021, with an average daily trading volume of $14 billion. This figure is 25 times higher than the same month in 2020. Founder Sam Bankman-Fried, known as SBF, stated, "FTX has become a first-class exchange offering innovative and industry-leading products." He recently gave an interview to Bloomberg regarding this matter.

Bloomberg Interview with SBF: Is Traditional Finance Outdated?

As the trading volume in the cryptocurrency market continues to grow, FTX saw over $400 billion in trading volume in April, and after Coinbase went public, it had a market value of $58 billion. The Bloomberg host was quite curious.

The host asked SBF, "Do you think the current cryptocurrency craze is an out-of-control phenomenon, or has traditional finance become outdated?"

SBF said, "This can be seen from two perspectives. The first is a more pessimistic view, that in the cryptocurrency market there is a lot of leverage, and it is easy to see a drop of 5-20% in a day, mostly caused by leveraged trading." He continued to say that from an optimistic point of view, in the past year, most international financial regulatory agencies have begun to take action, making more large financial institutions willing to engage in cryptocurrency assets, giving the industry the opportunity for significant growth in the coming years.

SBF Responds to the Bank of England's "Be Prepared to Lose Everything" Argument

The central bank governors of the UK and Europe recently stated, "Be prepared to lose everything if you want to invest in cryptocurrencies." The host asked SBF for his opinion.

SBF said, "I think what he said is not wrong because compared to stocks, cryptocurrencies are highly volatile." However, he believes that if you invest in a high-risk asset, you should be aware of the risks and be prepared to lose money when the market falls. He basically agrees with this statement but does not think it is very serious.

How to View the Surge of Competing Coins like Ethereum and Dogecoin

SBF stated that in the case of Ethereum, it is a completely different situation. It is indeed starting to attract institutions that previously only bought Bitcoin to begin buying Ethereum. The reasons for the rise of Ethereum are more complex and are driven by many factors.

On the other hand, the reason for the rise of Dogecoin is relatively simple. It is like the frenzy of retail investors buying GameStop and Tesla, especially with Musk's involvement.

Do Cryptocurrencies Have Fundamentals, or Are They Just Speculative?

SBF responded that some coins do have fundamentals, but many do not have fundamental support. However, from another perspective, what are the fundamental driving forces behind assets like gold and the euro? He believes that they all come from our collective imagination.

He further added that the operation of many currencies comes from our collective imagination, and the same applies to cryptocurrencies. Because many people want to buy Dogecoin, it gives value to it.

Does Dogecoin Pose a Threat to Bitcoin?

SBF feels that in recent years, many people have indeed been concerned about Bitcoin, but it has never had a real impact. While SBF is surprised by the growth of Dogecoin, it is still far from Bitcoin. Bitcoin has indeed gained recognition from many people and has the highest adoption rate, but that does not mean it will never change. However, what can truly challenge Bitcoin's status is not just memes but requires more incentives to make financial institutions pay attention.

How Would a Bear Market Affect the Financial Markets?

SBF stated that the current situation is mostly favorable for the cryptocurrency market because it is now under the spotlight of the financial market. It is not just about "Bitcoin as an alternative asset" or "a hedge asset"; both blockchain and cryptocurrencies are now gaining more attention than before.

However, for now, the cryptocurrency market is not yet a systemic point in the global financial market, so it will not have an impact for the time being.

Investing in Dogecoin: Just Looking at Volatility?

The host asked if some people believe that the lack of fundamentals in Dogecoin is not important, and the focus should be on its volatility, what should they be aware of?

SBF replied that it leads to zero, and he does not recommend investing in such high-risk assets. However, just as the value of gold does not come from its use as a metal, you never know what development Dogecoin might have.

Next Step: IPO?

SBF said that we have definitely considered an IPO, but it is not in the near-term plans. We are currently focusing on more acquisition plans. Additionally, we will not be acquired in the future.