Sam Bankman-Fried was working for a nonprofit organisation five years ago that followed the principles of ‘effective altruism, a philosophy that promotes utilising data and reason to figure out how to do the most good for others and acting on that premise. When he noticed a pricing anomaly in Bitcoin, he decided to venture into the world of cryptocurrencies, make millions, and give it out to the less fortunate.
Bankman-Fried, the founder of the cryptocurrency exchange FTX, is now one of the world’s wealthiest persons. The 30-year-old is worth over $20 billion, according to the Bloomberg Billionaires Index, following the latest round of venture capital investments in FTX and its US branch at a combined $40 billion valuation.
The underlying principle hasn’t changed in five years.According to Bloomberg, he expects to keep roughly 1% of his earnings, or at least $100,000 each year, to live comfortably and give the rest away.
Will MacAskill, a 25-year-old Oxford PhD student, was the one who initially suggested to Bankman-Fried the idea of ‘earning to give.’ Despite the fact that many people disagree with MacAskill’s theories, they appealed to Bankman-Fried.
After graduating, Bankman-Fried worked as a trader for the New York-based trading business Jane Street Group. Every year, he would donate half of his six-figure salary to charities and animal welfare organizations that were effective-altruism-approved. It wasn’t enough for him, though. He recognized an irregularity in cryptocurrency at this time, which led to the creation of FTX.
Bankman-Fried is believed to have donated $50 million last year, including for pandemic assistance in India and anti-global warming efforts. The goal for this year is to reach $1 billion.
Despite being a billionaire, Bankman-Fried lives like a capitalist monk, according to his pals, who consider sleep to be an unnecessary luxury.
On most weekdays, he sleeps in his workplace on a beanbag. The young billionaire drives a Toyota Corolla and believes that buying goods adds little value to his life.
In the previous five years, his commitments have changed. Bankman-Fried currently sits in box seats in front of NBA star and FTX sponsor Steph Curry for the Super Bowl. He eats lunch with Shaquille O’Neal, the basketball legend, and attends parties with the elite of the entertainment and business worlds.
Bankman-Fried discussed cryptocurrency with pop sensation Katy Perry during a dinner thrown by musician Sia Furler in a Beverly Hills residence. Impressed by his talk, Perry announced on Instagram the next day: “I’m quitting music and becoming an intern for @ftx official ok.”
