Goldman Sachs looks to buy troubled criptocurrencies

Goldman Sachs is on a shopping spree to pick up embattled criptocurrencies that have been impacted by the FTX.

Learn how smart money is playing the game of criptocurrency.

Mathew McDermott, Goldman Sachs' head of criptocurrency, told Reuters that the collapse of FTX negatively impacted the market, but it's certainly set the market back in terms of sentiment, there's absolutely no doubt of that, McDermott said. FTX was a poster child in many parts of the ecosystem. The underlying technology continues to perform. He said that there are some really interesting opportunities that are priced more sensibly. The company said it is willing to invest tens of millions in Cryptocurrencies despite the turbulent market and the cold winter.

In the past, Goldman Sachs had invested in Cryptocurrencies such as CertiK, TRM Labs, Elwood Technologies and Coin Metrics, but it is not clear who the investment bank is looking to acquire.

A month ago, the company announced a data service with financial company MSCI and Coin Metrics to better categorize coins and tokens to help investors navigate the market. Goldman Sachs hopes to help hedge funds and institutional investors analyze cryptocurrencies more effectively for investment.

According to Mark Fidelman, founder of SmartBlocks and host of the Cryptonized podcast, Goldman Sachs is attempting to bring trust to the markets by buying distressed assets, not for any altruistic reasons. I don't blame them for that, but let's call it what it is. Other people say Goldman Sachs is just eyeing market share to build its customer base and get ahead of the impending regulation. Gabriella Kusz, CEO of the Global Digital Asset and Cryptocurrency Association, said that the acquisition of weaker firms at bargain prices is a great investment and strategic positioning in the digital future.