FTX Bold Move: Sells SUI For $100 Million, Tokens Now Worth $1 Billion
3 min read
According to the trader and analyst of the crypto market under the pseudonym “Googly,” the fallen crypto exchange FTX sold warrants for $884 million SUI tokens to Mysten Labs and preferred stock for less than $100 million in March. The paper valuation for the tokens is now worth $1 billion.
The sale of the warrants and preferred stock is significant for FTX, providing additional funding to support its operations and expansion. FTX has been gaining traction in the cryptocurrency market, and the additional funding will undoubtedly help the company continue to grow and innovate.
However, It is worth noting that the value of the tokens and preferred stock can only be realized if FTX relaunches.
FTX Laughing All The Way To The Bank? Not Quite
FTX filed a court document on March 22, 2023, outlining its sale of interests in SUI Foundation and the Purchaser-Subject Company. According to the document, FTX Ventures Ltd. acquired 560,045 Series B Preferred Stock shares in the Purchaser-Subject Company and a warrant to purchase 363,636,305 SUI Tokens for a total of $99,999,843.06.
Additionally, Cottonwood Grove Limited acquired a warrant to purchase 173,333,333 SUI Tokens, and FTX Trading Ltd. acquired a warrant to purchase 346,666,667 SUI Tokens. These warrants are only exercisable upon achieving certain milestones and events concerning the implementation of SUI protocols and trading SUI tokens on the FTX.com platform.
On August 31, 2022, FTX Ventures Ltd. acquired an additional 7,000 shares of Preferred Stock in the Purchaser-Subject Company and a warrant to purchase 4,114,898 SUI Tokens. All of the SUI Token Warrants are only exercisable after the SUI Tokens are minted, generated, or created, if ever. The Preferred Stock and the SUI Token Warrants held by the sellers are referred to collectively as the “Interests.”
FTX has now filed a court document outlining the sale of these Interests for cash consideration. The document states that the Interests are easily separated from the Debtors’ core operations. The sale of the Interests will not affect the Debtors’ ability to operate any of their businesses.
In addition, any income that the Preferred Stock might generate in the form of dividends or distributions is uncertain and would only be received at the discretion of the Purchaser-Subject Company’s board of directors.
What You Need To Know About SUI
SUI Tokens are a digital asset created by Sui Foundation, a blockchain-based platform that aims to provide secure, transparent, and decentralized data management and storage solutions. The SUI Tokens are designed to be used within the Sui ecosystem, allowing users to access various services and applications.
Furthermore, the SUI Tokens are based on the Ethereum blockchain and are ERC-20 compliant, meaning they can be easily integrated with other Ethereum-based applications. The tokens can be used to pay for services within the Sui ecosystem, such as data storage and data management, and can also be traded on various cryptocurrency exchanges.
As reported by NewsBTC, the highly anticipated launch of SUI, a blockchain-based platform for secure and decentralized data management, is finally here. Dubbed the next “Ethereum killer,” SUI is expected to shake up the cryptocurrency market with its unique technical approach.
Featured image from Unsplash, chart from TradingView.com
