Cryptocurrencies gain value when they are tokenized and placed on a blockchain

Sam Bankman-Fried (SBF), CEO of the FTX exchange, revealed that the cryptocurrency "has specific use cases" to support its utility and functionality, such as tokenizing assets and conducting digital transactions and payments.

The FTX CEO highlighted the following on the Point Forward podcast:

"Essentially, cryptocurrencies are a way to tokenize assets. This is clearly what happened with Bitcoin, which is you have a digital asset that anybody can access and anybody can easily transfer to each other. You think of it as gold, but you don't." have to deal with bullion, cleaner and easier access and a full auditable transaction history."

"That's one aspect. The other aspect is the blockchain, it's the underlying network, which is really great, they're a way to have a complete network where anybody can come in and open an account, anybody can send assets. Give it to anybody, otherwise, instantly, at low cost, completely online, at the click of a button. The full history of all of this on the ledger. It's a complete payment network in a way."

The FTX CEO recalled that blockchain technology makes different industries more efficient and enables "cleaner" business models by offering options such as transparency and all-digital work schemes, easier transactions, digital project creation, etc.

SBF's FTX has dodged much of the cold winter that left some companies exposed. Voyager Digital, Celsius, Babel Finance and Three Arrows Capital have all experienced freezes, leaving some investors desperate to get their deposited funds back.

Even in July, SBF said it and its exchange had "billions" of dollars available to help support struggling cryptocurrencies.

"It's very important to convince consumers that things will work as advertised, and if they break, it's hard to get them back," he said. Still, he believes the worst of the liquidity crisis may be over, adding that the industry has overcome "other big shoes that have had to drop."