The cryptocurrency market is new compared to other established financial markets like the stock and forex. For this reason, Sam Bankman-Fried thinks it is less efficient, and more work needs to be done to bring crypto space to match with the other markets.
The crypto market is still disorganized
Sam Bankman-Fried, the CEO of cryptocurrency exchange FTX, was hosted by Bloomberg earlier today. During the interview, Bankman-Fried discussed several issues, including markets, finance, and economics.
The CEO, who is also the second-richest man in the crypto space, pointed out that the cryptocurrency market is less efficient compared to the established financial markets. “The crypto market has come a long way in recent years. But it’s still far less efficient than your typical established market,” Bankman-Fried said.
According to Bankman-Fried, the cryptocurrency market differs from country to country and from one region to another. The cryptocurrencies trade at different prices in various countries, especially in South Korea, where the premium feature has been adopted. The regulatory environment in each country also differs. These factors contribute to the cryptocurrency market being less efficient than the stock, forex, and commodity markets.
Bankman-Fried is a former international ETF trader at the prop shop Jane Street Capital. Having ventured into the cryptocurrency space, Bankman-Fried is building a cryptocurrency empire after founding crypto exchange FTX and hedge fund Alameda Research.
The crypto market slowly gaining adoption
Despite the cryptocurrency market being less efficient than the other financial markets, it is slowly gaining retail and institutional adoption. The market is just over a decade old and has room for massive growth.
The market is expected to grow and compete with the more established ones over the coming years as more financial institutions and corporate entities enter the cryptocurrency space.