• FTX’s SUI token warrants may have been worth $1 billion if the crypto exchange did not sell them too early.
• In 2022, FTX Ventures, the venture capital arm of the bankrupt crypto exchange FTX, led Mysten Labs’ Series B funding round.
• By selling 890 million SUI token warrants, FTX missed out on potential $1 billion paydays from its SUI tokens.
FTX Misses Out on a Potential $1 Billion Windfall
FTX’s SUI token warrants may have been worth $1 billion if the crypto exchange had not sold them too early. The bankrupt crypto exchange missed out on this potential windfall after it sold its warrant rights to the native token of an upcoming layer-1 blockchain.
Mysten Labs‘ Series B Funding Round
In 2022, FTX Ventures, the venture capital arm of the bankrupt crypto exchange FTX, led Mysten Labs‘ Series B funding round. Mysten Labs is the developer of Sui Blockchain and managed to raise $300 million at a valuation of $2 billion with other well-known participants in the round including Binance, Coinbase, and Circle. Part of this investment saw FTX purchasing equity stakes in Mysten Labs worth $101 million and also warrant rights to purchase over 800 million SUI tokens worth $1 million.
SUI Token Price Rises Following Mainnet Launch
Following the launch of Sui mainnet earlier this year, its native token price rose to over $3 before dropping in value again due to market conditions. At its current price level now, FTX’s 890 million SUI tokens would be worth around $1 billion if they were still held by the company.
FTX Management Lost Opportunity for Huge Payday
By selling off their 890 million SUI tokens warrant rights too quickly however, FTX’s management lost out on a huge potential payday that could have been achieved through holding onto these assets until after Sui’s launch date when their value rose significantly higher than what was originally paid for them.
Conclusion
Bankrupt crypto exchange FTX missed out on a potential $1 billion windfall by selling off their 890 million SUI tokens warrant rights too early before they had risen in value following Sui Blockchain’s mainnet launch earlier this year.