FTX to Sell Stake in Web3 focused Mysten Labs
[TL; DR]
FTX is set to sell back its stake in Mysten Labs to raise funds to compensate its former customers.
FTX invested in Mysten Labs in August 2022 before it collapsed.
Mysten Labs is the creator of SUI, a layer 1 blockchain.
The SUI token is not yet listed on mainstream crypto exchanges.
Introduction
FTX debtors are working hard to recover some of the funds through a legal channel. As things stand, there is hope that FTX will raise money to compensate its former customers for the financial losses they incurred. In this post, we look at how close FTX is to raise the required funds.
FTX ready to sell its stake in Mysten Labs
According to the presentation made to the U.S. Bankruptcy Court in Delaware, FTX is ready to sell its preferred shares, valued at $95 million back to Mysten Labs, the company behind the Sui blockchain. In addition to the $95 million, Mysten Labs will also cede $1 million worth of SUI as part of the sale agreement. The FTX debtors have already agreed to the deal which now awaits the approval of the court and higher bids.
Recently, the court said, “The Debtors carefully considered and analyzed the offer as set forth in the Agreement in comparison to its other options and concluded that a sale of the Interests will result in obtaining maximum value for the Interests, and is in the best interests of the Debtors’ estates and creditors.”
It further stated, “The Purchase Price is equal to approximately 95% of the amount FTX Ventures had originally invested in the Preferred Stock of Purchaser-Subject Company, plus 100% of the amount Sellers paid for the SUI Token Warrants.”
FTX Ventures Ltd, the arm of FTX, purchased stakes worth $101 million in Mysten Labs in August 2022, a month before the FTX crash. In fact, FTX Ventures Ltd led the fund rounding that raised $300 million. However, the debtors have agreed to sell the stake at a loss since it is desperate to raise money to compensate the former FTX customers who lost their funds.
This offer, however, is set to expire in April. Mysten has agreed to effect the transaction as soon as possible. In addition, the court filing seems to indicate a willingness by both parties to abide by the agreement.
It says, “The Debtors carefully considered and analyzed the offer as set forth in the Agreement in comparison to its other options and concluded that a sale of the Interests will result in obtaining maximum value for the Interests, and is in the best interests of the Debtors’ estates and creditors.”
The FTX debtors have also announced that they aim to recover $460 million from Madulo Capital. This was an investment made by Alameda Research under the direction of Sam Bankman-Fried, the former FTX CEO.
What is Mysten Labs?
Let’s briefly look at what Mysten Labs is. In simple terms, Mysten Labs is the firm behind the SUI, a layer1 blockchain, developed to challenge the likes of Solana and Ethereum blockchains. It is also the owner of the SUI crypto.
Mysten was founded by Evan Cheng, the former head of research and development at Novi Financial, Meta’s crypto wallet. It has several investors who include a16z Crypto unit (owned by Andreessen Horowitz), Binance Labs, Franklin Templeton, Jump Crypto, Lightspeed Venture Partners, Sino Global, Dentsu Ventures, Greenoaks Capital, Apollo , Coinbase Ventures, Circle Ventures and O’Leary Ventures, among others.
It is important to note that Mysten Labs’ other co-founders including Sam Blackshear Adeniyi Abiodun, Kostas Kryptos and George Danezis, the chief scientist, are all former employees of Meta.
SUI layer1 blockchain
Developed by Mysten Labs, SUI is a scalable layer1 blockchain that supports the development of decentralized applications (dApps) at very low cost. According to the developers, this blockchain has near instant settlement of transactions and offers user-friendly services suitable for web3 projects.
Conclusion
The FTX debtors have entered an agreement with Mysten Labs to sell its stake. The two parties are now awaiting the approval of the U.S. Bankruptcy Court in Delaware. FTX invested in Mysten Labs in August 2022, a few months before its collapse. The proceeds from the sale will be used to compensate FTX’s customers that lost their funds when it imploded.
FAQs on SUI blockchain
Does SUI blockchain have a token?
The SUI blockchain has a native token called SUI which is, however, not listed on mainstream exchanges. Currently, it is not listed on crypto aggregators like CoinMarketcap and CoinGecko.
Can you buy SUI?
SUI is not yet listed on any exchanges. However, anyone can still purchase it via peer-to-peer trade because some investors may own it. It is the native token for SUI layer1 blockchain, a strong rival of Solana and Ethereum blockchains.
Is SUI a blockchain?
SUI is a layer 1 blockchain which supports decentralized applications (dApps) for various web3 projects. It has fast transactions, high scalability and low transaction fees.
How much is one SUI?
SUI has no known value since it is not available on mainstream cryptocurrency exchanges. Also, it is not listed on CoinGecko and CoinMarketCap.
Is SUI on Gate.io exchange?
SUI is not listed on Gate.io centralized exchange. Therefore, you cannot buy it there. However, you can keep checking the Gate.io web platform in the future as it lists new cryptocurrencies from time to time.
