Crypto company valuations have been impacted by the recent FTX debacle. Meanwhile, financial services firm Goldman Sachs is all about buying cryptocurrency companies when prices are low. So Goldman Sachs is thinking alike with investors planning to “buy at the bottom” in a bear market. According to reports, Goldman Sachs is looking to invest millions in crypto companies that are currently undervalued. Here are the details…
Moves may come from Goldman Sachs for cryptocurrencies
A major investment firm seems to have regained its interest in the cryptocurrency space, with the recent declines. Mathew McDermott, an executive at Goldman Sachs, revealed the company’s plans in an interview with Reuters. The collapse of FTX highlighted the need for more regulation in the industry. He then said that big banks saw opportunities in this area. The executive noted that the firm is currently seeing “more reasonably priced” deals. He added that he has done due diligence on some crypto companies.
Commenting on the FTX debacle, McDermott also noted that the market faced setbacks in terms of sentiment. However, the traditional finance executive stressed that while FTX has become the “poster child” of the field, the technology behind the industry “continues to perform.” cryptocoin.com As we reported, the FTX liquidation crisis and bankruptcy has been the number one agenda item in the field. It has turned the crypto space upside down since the beginning of November.
The FTX debacle has taken a toll on markets that have crashed over the past few months. It was the final push to an industry that has seen numerous high-profile bankruptcies. The development has also spread to firms such as crypto lending firm BlockFi, which declared bankruptcy in the same month. On the other hand, as the problems in Genesis came to light, the concern even spread to the Grayscale Bitcoin Trust and other products, which are considered the largest funds in the field.
FTX collapse affected the industry deeply
The collapse of FTX continues to create a domino effect affecting crypto-focused companies with exposure to the embattled firm. That’s why institutional investors like Goldman are looking for opportunities to buy and invest at lower prices, while the effects of FTX lower valuations. Meanwhile, a UK-based digital bank has banned the purchase of cryptocurrencies for its users. Therefore, its customers will not be able to buy Bitcoin or other cryptos.
Apart from that, users will not be able to receive transfers from crypto exchange platforms. The collapse of FTX has pushed the space back in interest, while some institutional players are working to increase institutional adoption. On December 6, crypto firm SEBA Bank partnered with financial services firm HashKey Group to accelerate institutional adoption of crypto in Hong Kong and Switzerland.
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