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“FTX Misses Out on Potential $1 Billion Profits from SUI Due to Bankruptcy “

FTX, the bankrupt crypto exchange, could have owned billions of dollars worth of SUI tokens, the native FTX token of a layer-1 blockchain that was about to be launched. ftx

However, sold its warrant rights too early, missing the opportunity.

After the launch of the Sui mainnet, the price of the SUI token skyrocketed to over $3, but later dropped in value. Had FTX held onto their SUI tokens, they would have been worth around $1 billion at the current price.

In 2022, FTX Ventures, the venture capital subsidiary of the bankrupt crypto exchange , was the lead investor in Mysten Labs’ Series B funding round, which raised $300 million at a $2 billion valuation. Mysten Labs is the developer of the Sui blockchain. Other prominent participants in the round included Binance, Coinbase, and Circle.

FTX Ventures, the venture capital arm of the now-bankrupt exchange, acquired equity stakes in Mysten Labs worth $101 million and warrant rights to purchase over 800 million SUI tokens worth $1 million as part of Mysten Labs’ Series B funding round in 2022. However, in March 2023, announced that it planned to sell back its stake in Mysten Labs, as well as its SUI token warrant rights.

FTX Misses Out on SUI Gains After Prematurely Selling Token Warrants

FTX missed out on potential gains of up to $1 billion after it sold 890 million SUI token warrants, which would have given the exchange the right to receive assets upon the launch of the SUI mainnet. Token warrants are financial instruments that provide investors with the right to FTX receive assets in the future. However, sold these warrants too early, and at current prices, the SUI tokens would have been worth around $1 billion.

In April, FTX completed the repurchase deal for a slightly reduced price of $96 million, compared to the $101 million it paid for the equity stakes in Mysten Labs and warrant rights to purchase SUI tokens. The deal was part of FTX’s bankruptcy proceedings.

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