FTX Completes Blockfolio Transaction Mainly In FTT Tokens: Report

The collapsed cryptocurrency exchange has reportedly paid 94% of the $84 million to buy a majority stake in Blockfolio in FTT tokens.

The coin played a leading role in the platform’s crash last month. CZ said Binance plans to dump its entire FTT stock (23 million tokens worth more than $580 million at the time) amid growing concerns about FTX and Alameda’s overexposure to the former on-premises asset.

New information on the Blockfolio deal

According to a recent Bloomberg reportsFTX acquired a majority stake in the Blockfolio trading platform in 2020 using almost entirely FTT tokens (the domestic asset of the bankrupt exchange).

Sources previously revealed that the former crypto giant funded the deal with a mix of digital currencies, cash and stocks, without providing exact information. Initial reports suggested FTX spend 150 million dollars to complete the deal.

Founded in 2014, Blockfolio has become one of the leaders in its field, amassing nearly six million clients in the following years. It shook hands with the infamous FTX for adding a retail experience to its users and later took the name of the exchange.

For its part, the platform’s native token was in the spotlight last month after Binance He said it will be sold Its entire FTT holdings ($584 million as of early November).

This move triggered a wave of customer withdrawals and FTX was unable to meet these requests. exchange Archived To protect from bankruptcy several days later, it owes billions of dollars to investors.

The negative event had a devastating effect on the price of FTT. The token is currently trading at around $0.87 (nearly 99% of its peak in September 2021).

The SEC sees FTT as a security

The US Securities and Exchange Commission (SEC) recently claimed That FTT shall be considered “Non-Liquid Crypto Asset Security issued by FTX and provided to Alameda at no cost.”

The agency further alleged that the bankrupt exchange used profits from the sale of the asset to increase development, business operations and marketing of its brand. At the same time, it attracted consumers that its token is an “investment” with great potential.

“FTT materials made it clear that the efforts of FTX’s core management team will drive growth and maximum profitability FTX success. The white paper also announced that some features gave FTX an edge over competing platforms, including its industry-leading risk management systems and its liquidation engine model.

SEC Chairman Gary Gensler previously described bitcoin as the only cryptocurrency that can be classified as a commodity.

FTX Post Completes Blockfolio Deal Mainly in FTT Tokens: The report appeared first on CryptoPotato.

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