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Dogecoin is far from Bitcoin and does not pose a threat, FTX founder SBF said

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SBF spoke to Bloomberg.

In a live interview with Bloomberg on May 11, FTX founder SBF spoke about the differences between cryptocurrencies and traditional finance and the changing financial times. As the cryptocurrency market continues to grow in volume, the FTX saw more than $400 billion in trading volume in April, while Coinbase's stock was valued at $58 billion after its initial public offering.

"Do you think the current cryptocurrency boom is a phenomenon out of control, or is traditional finance passee?" a Bloomberg host asked the SBF.

"There are two sides to this," SBF said. "The first is the pessimistic view, which is that there is a lot of leverage in the cryptocurrency market, and you can easily see declines of 5-20% or more in a single day, most of which are due to leverage." On the positive side, he continued, most international financial regulators have begun to act in the past year to get more large financial institutions to engage with cryptocurrency assets, giving the industry the opportunity to grow substantially in the coming years.

彭博主持人：此前英国央行行长曾表示，投资加密货币就是要「准备好赔光」，你怎么看？

SBF: If you want to invest in cryptocurrencies, be prepared to lose all your money. There's nothing wrong with that, because cryptocurrencies are more volatile than stocks. But if one of you is investing in a risky investment, you should understand the risks and be prepared to lose money if the market falls.

But the SBF doesn't think it's serious.

彭博主持人：最近，以太币、狗狗币等竞争币的大涨，对此有何看法？

SBF: Ethereum and Dogecoin's rise are completely different things. Because Ethereum is really starting to attract some of the institutions that used to only buy bitcoin to start buying Ethereum. The reasons for the rise in Ethereum are complicated, and there are a lot of drives that are causing it. Relatively speaking, the reason for Dogecoin's rise is relatively simple. It's like the retail buying of GameStop(GME) and Telsa(TSLA) hype, especially Musk's buying.

Bloomberg moderator: Do cryptocurrencies have fundamentals, or is it just speculation?

SBF: But on the other hand, what are the fundamental driving forces in the value of assets like gold and the euro? They are all driven by our collective imagination. And a lot of currencies are driven by our collective imagination. The same is true for cryptocurrencies, and because so many people want to buy Dogecoin, it gives it value."

彭博社主持人：狗狗币会带给比特币威胁吗？

SBF: There's been a lot of concern about Bitcoin over the years, but it's never really had an impact. Dogecoin's growth is surprising, but it's still a long way from Bitcoin. It's true that Bitcoin has gained a lot of value and has the highest adoption rate, but that doesn't mean it will never change. But the real challenge to Bitcoin is not just memes, but more incentives for financial institutions to pay attention.

彭博社主持人：如果转回熊市对金融市场有影响？

SBF: The current situation is mostly good for the crypto market as it moves into the spotlight of the financial markets. It's not just about "bitcoin as an alternative asset" or "safe haven asset," but both blockchain and cryptocurrencies are getting more attention now than ever before. But for now, the cryptocurrency market is not a systematic point in global financial markets, and therefore will have no immediate impact.

彭博社主持人：有人认为狗狗币有没有基本面不重要，重点是它有波动性，这样的观点应注意什么？

SBF: That's zero. I wouldn't recommend investing in such a risky asset. However, just as the value of gold doesn't come from its use as a metal, you don't know what Dogecoin will do.

彭博社主持人：接下来会有 IPO计划吗？

SBF: It's impossible not to think about an IPO, but it's not something we're planning on in the near future. What we are doing is we are planning more acquisitions, and we are not going to be acquired in the future.