This move by Goldman Sachs comes at a time when FTX's dramatic collapse has toppled the value of cryptos
The Goldman Sachs building in Manhattan, New York City. Image: Spencer Platt/Getty Images/AFP
After the implosion of FTX, Goldman Sachs, one of the largest investment banks in the world, plans to spend tens of millions on crypto companies whose valuations have gone down, as reported by Reuters.
The crypto market is much less crowded right now battling the effects of the collapse of FTX, and Goldman sees that as an investment opportunity priced sensibly.
Following alarming revelations about its financials and its relationship with Almada Research, FTX filed for chapter 11 bankruptcy on November 11, after it came to light that the CEO of FTX, SBF, allegedly used billions of FTX customer funds to keep his company afloat.
To a market that's already going through a bear run and has faced several high-profile bankruptcies already, the FTX fiasco was downright depressing, with countless people losing all their savings.
"FTX was a poster child in many parts of the ecosystem," said Mathew McDermott, Goldman's head of digital assets. "But to reiterate, the underlying technology continues to perform," he added. "We do see some really interesting opportunities, priced much more sensibly," he further said.