Following the decline in value and investor interest caused by the failure of the FTX exchange, the investment banking firm Goldman Sachs has announced their intention to spend tens of millions of dollars purchasing or investing in crypto firms.
Matthew McDermott, head of digital assets at Goldman Sachs, said in a remark that the effects of FTX have increased the need for more dependable and regulated cryptocurrency players, and that this presents an opportunity for the large banks to enter the market.
He noted that Goldman Sachs is doing due diligence on a number of other cryptocurrency startups, but declined to provide more details.
McDermott said, “We do see some very exciting possibilities, priced lot more rationally,” in regard to the company’s prospects.
On November 11, 2018, after its rapid fall, FTX filed for protection under Chapter 11 of the United States Bankruptcy Code in the United States. This sparked worries of a contagion and increased demands for additional cryptocurrency regulation.
In addition to this, McDermott was quoted as saying, “It’s put the market back in terms of sentiment, there’s absolutely no question of that. FTX was a poster kid in many sections of the ecosystem.” To restate, the technology that underpins everything continues to function properly.
Compiled by Coinbold