Changpeng Zhao commented on Binance Labs’ role in FTX funding rounds and unveiled its views on team’s FTT stake
Anonymous cryptocurrency analyst @frxresearch has shared a full list of institutions that have invested in FTX in its Seed funding round as well as A, B and C funding rounds. Here’s what makes a firm so special from the list.
“All rekt except Binance”
It seems that the list published by @frxresearch includes all top-tier VCs and institutional investors. As FTX Token (FTT) is down 98% from its all-time high, the majority of them must be underwater.
The researcher said that all investors on the list should be “rekt”, which is the broken English equivalent of “ruin”. This slang term is used by gamers to characterize losing players in PvP battles, while traders and investors use it to describe liquid actors who lost money.
Changpeng Zhao, CEO of Binance, took to Twitter to comment on @frxresearch’s estimation that Binance Labs (a VC arm of Binance that backed FTX in the Series A round) still holds its position in FTX Token:
we still have a bag of ftt
As previously covered by U.Today, one of the firms on the list, Galois Capital, lost more than 50% of its assets under management (AUM) due to the collapse of FTX. In Q1, 2022, it was one of the few VC firms to avoid losing money in the LUNA/UST drama.
Will Binance CEO sell FTT tokens on OTC?
Travis Kling, founder of Ikigai Asset Management, admitted that the majority of his firm’s funds were stored on FTX and cannot be recovered.
Meanwhile, Binance’s CZ claimed that he does not consider selling FTT in any way. He is sure that such traumatic events do not seem unusual to him, as “you win some, you lose some.”
His followers have also asked him about the possibility of selling FTX Tokens (FTT) via over-the-counter instruments (OTC). CZ answered that it is not an option for Binance Labs:
Don’t think it will work. There will be all kinds of excuses/problems anyway. and i don’t like to deal with cheaters
Five days ago, Zhao stated that his team has never shorted its FTT positions and stopped selling the token immediately after a conversation with Sam Bankman-Fried.
