FTX Investors Are Afraid Of “Losing Everything” In The Acquisition With Binance

After Binance agreed to an acquisition with FTX, the exchange’s venture capitalists were surprised and now they are worried that their investment will be wiped out in the deal.

According to information from The Information, Binance’s bailout with its acquisition of rival FTX has the exchange’s venture capitalists worried that their investment will be wiped out in the deal.

The four investors in FTX revealed that the fate of their holdings is still unknown and they are still trying to figure out how they will be affected by the Binance trading. Another investor said they received text messages throughout the day from limited partners, institutional investors worried that the value of the shares would be wiped out.

As was updated in previous Coincu News articles, on November 8, Binance agreed to buy FTX amid panic that raised concerns that Sam Bankman-Fried’s crypto exchange is trading gradually collapsed.

Zhao also confirmed the deal on Twitter by saying that the two exchange industry giants signed a non-binding letter of intent.

FTX was valued at $32 billion in its most recent funding round (Series C) in January of this year. The company includes Sequoia, BlackRock, Tiger Global, Paradigm, Thoma Bravo, SoftBank, Ribbit Capital, Insight Partners, Lightspeed Venture Partners, Altimeter Capital, Coinbase Ventures, Sino Global, Bond and Iconiq Growth among its long list of backers.

FTX and its FTX.US business have raised more than $2.2 billion through several funding rounds, according to Web3 Signals, a cryptocurrency exchange.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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