Sam Bankman-Fried might be crypto's central banker as bailouts pile up, but others could step in as 'Sam was just the first'

Sam Bankman-Fried is spending a lot of money to save failing cryptocurrencies ventures.

He toldNPR last month that he felt obligated to stop the spread of the disease. FTX is willing to do a somewhat bad deal if that's what it takes to sort of stabilizing things, according to Bankman- Fried.

As risk assets respond to the Federal Reserve's tightening, there are bad deals that extend lifelines to victims of a market downturn. He offered up to half a billion dollars in cash and Cryptocurrencies to two companies.

Bankman- Fried was the last resort's lender of last resort, as a result of the rescues. The Federal Reserve was helped by the rescue of the US financial system more than a century ago.

Bankman- Fried has come to the rescue before. FTX extended a $120 million loan to Liquid Group after it was hacked.

At a time when digital assets are in freefall, Bankman- Fried has emerged as a central bank-like figure for the market. According to analysts, he may not be the only one in the future, as continued volatility in the market gives other billionaires an opportunity to enter.

Chris said that Sam was the first. He said that the climate is similar to the 2008 financial crisis and that larger exchanges will be prioritized.

Changpeng Zhao is the founder and CEO of the world's largest coin exchange. Sky Mavis suffered a $625 million hack and was the subject of a $150 million round of financing.

"Sky Mavis will bring a lot of value and growth for the larger industry and we believe it's necessary to support them as they work hard to resolve the recent incident."

He opined last month on the subject ofcryptocurrencies. "We also have a responsibility to help industry players survive and hopefully thrive," wrote Zhao in a June 23 post on his website.

Such rescues might not be altruistic. The head of the exchanges want to prevent a sector collapse.

Bankman- Fried might not want to miss a good deal. The $400 million credit facility from FTX US has an option to purchase up to $240 million.

OANDA analyst Edward Moya said before the deal was announced that it looked like SBF was playing chess while the rest of the community was playing checkers. SBF is trying to take advantage of some very attractive discounts, because a lot of the companies in the space are close to insolvency.

An earlier precedent would be followed by a takeover of BlockFi. The company was bought by FTX in February. There are more deals on the way.

"There's no doubt that others will come in to swoop up assets as the situation evolved and not limited to players in the criptocurrency space," said Martha Reyes, head of research at BEQUA NT.