FTX’s investment in Mysten Labs and its subsequent repurchase of equity investment and SUI token warrants have been a topic of discussion in recent court documents. Mysten Labs had completed a B-round financing of over $300 million at a valuation of approximately $2 billion. FTX invested $102 million in the B round and received approximately 890 million Sui Tokens at an average cost of $0.114.
FTX’s market makers, Alameda and FTX Trading, received almost 519 million Sui Tokens for free, which they planned to use for market making on the FTX platform after the Sui Network mainnet launch and Sui Token launch. However, with FTX crashing before the launch, the protocol for the token warrant is also gone. The cost of Sui Token chips for some B-round investors is about $0.28-$0.31.
Mysten Labs has agreed to repurchase FTX’s equity investment in Mysten Labs and SUI token warrants for $96.3 million in cash. This means that a large amount of FTX’s low-cost investment chips and market-making chips have been recovered, which is a positive development for the future launch of Sui Token. FTX debtors can continue to “seek higher offers from other third parties” until the court finalizes the sale date.
The launch of the SUI mainnet and the release of Sui Token do not need to consider the handling of the previous investment chips from FTX, as the issue with the FTX debtor has been resolved. Once the $96.3 million cash repurchase is completed, there will be no short-term financial impact on Mysten Labs, which just raised more than $300 million last year. The long-term impact may mainly lie in Mysten Labs’ layout of Web3, such as investment and acquisition of Web3 projects.
It is worth noting that FTX also led the investment in another Move chain, Aptos, with a similar valuation and investment amount. FTX’s investment plan for Aptos may be very similar to Sui, where FTX holds a large amount of low-cost investment chips and market-making chips. Some low-priced chips of Aptos have already entered the market, and the unsold chips will wait for the disposal plan of FTX creditors.
#FTX #SuiNetwork #Sui #SuiToken #azcoinnews
This article was republished from azcoinnews.com