By Richard Hines
The Goldman Sachs organization plans to invest millions of dollars in crypto companies. This came as a result of the turbulent effect the FTX crash had on the crypto market.
Investment For Striving Crypto Firms
On Tuesday, the news agency Reuters reported that one of the biggest and most prestigious American banks, Goldman Sachs, would be making a significant investment in struggling and start-up businesses.
Due to the recent meltdown that wrecked havoc on the cryptocurrency market, Goldman Sachs Corporation said that it would spend over tens of millions of dollars into affected firms.
Following the FTX crash, many exchanges lost customers’ trust and confidence in their firms, causing the cryptocurrency industry to go through a turbulent and difficult era.
Matthew McDermott, the head of digital assets at Goldman Sachs, however, suggested that this fall could present market key players with a favorable opportunity.
Although the FTX crash and LUNA crash in May severely damaged the market and turned it upside down, according to McDermott, now is the ideal time for investors, developers, and key players to concentrate more on the underlying blockchain technology and see to its advancement.
The CEO of Ethereum, Vitalik Buterin, recently stated that users and investors in the cryptocurrency field should concentrate more on developing the underlying blockchain technology rather than only looking out for their financial interests.
The Goldman Sachs CEO praised the capabilities and potential for the underlying blockchain technology to cause a disruption in the financial system.
He does note that the reach of banks to employ cryptocurrency is constrained by regulatory obstacles.
Believers Vs Non Believers Of Crypto
Other prestigious American banks, though, are less enthused and bullish about cryptocurrencies.
Some major company CEOs, including James Gorman, the CEO of Morgan Stanley, have referred to cryptocurrency as a digital asset with no fundamental worth and stressed that despite the sector’s underperformance, it has arrived and won’t fade away but will instead continue to expand.
Jamie Dimon, CEO of JP Morgan Chase, continues to hold a negative view of the cryptocurrency industry and does not promote digital currencies.
Although it is likely that Goldman Sachs’ investment in the cryptocurrency business would not be profitable and may ultimately backfire on his company, he does not appear to be discouraged from making the investment.
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