The days pass and the light is gradually coming to light on the past of FTX: today we learn that the company had settled 94% of the 84 million dollars necessary for its acquisition of Blockfolio with its own token, the FTT. At that time, it was only mentioned a purchase “in cash, cryptocurrencies and equity”.
FTT as a means of purchase for FTX
According to exclusive information from our colleagues at Bloomberg, FTX used the vast majority of its own token, the FTT, to complete the acquisition of Blockfolio in 2020.
At that time, FTX was only a year old, and Sam Bankman-Fried’s empire was still in its infancy. And yet, its CEO already had an inordinate appetite for big-ticket acquisitions: the acquisition of Blockfolio had reached 84 million dollarswhich made it, at that time, one of the largest transactions in the cryptocurrency community.
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FTX, which was still aimed almost only at seasoned professional traders, had acquired Blockfolio in particular in order to expand its aura and reach a wider audience. Although Sam Bankman-Fried’s business was rated as one of the most liquid at the time, that didn’t stop her from using FTT to complete the transaction… 94%.
At the time of this acquisition, the precise figures had not been disclosed, it was then only a question of a purchase with a mixture of “cash, cryptocurrency and equity”. Anyway, following this transaction, SBF became majority shareholder of Blockfolio had 52% of the shares of the company.
And yet, it is this same FTT token that is today – at least in part – responsible for the collapse of FTX. Indeed, the panic had started among the users of the platform when our colleagues from CoinDesk reported at the beginning of November that the majority of the funds held by Alameda Researchthe sister company of FTX, were actually in the form of FTT tokens.
The FTT token is currently trading at $0.87, down 98% over the past 12 months. For comparison, when it reached its highest price in September 2021, the FTT traded at $84.18.
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Published by Editions Larousse
Source: Bloomberg
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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