Nickel Digital, which was founded in 2019, caters to institutional investors. According to its website, the London-based firm is authorized and regulated by the UK’s Financial Conduct Authority and registered with the US Commodity Futures Trading Commission.
This equates to around 6% of the firm’s $200 million in assets under management, according to founder partner and chief investment officer Michael Hall, who spoke at the City & Financial Global conference in London. He stated that about a third of Nickel Digital’s funds on FTX were covered.
Nickel Digital, according to Hall, exclusively trades on large, successful exchanges and initially resisted utilizing this exchange. “We examined them and saw that the bid-offer spreads were fairly narrow. That was most likely Alameda taking advantage… thus we didn’t see the benefit of trading on FTX “He stated.
However, Nickel began using FTX in 2021 when the crypto exchange operator received funds from well-known institutional investors. “We relied on equity investors’ due diligence. We assumed they were wise money. It turned out not to be the case, “Hall stated.
Before filing into bankruptcy last week, FTX had raised $1.8 billion in total investment and was valued at $32 billion. Temasek, Paradigm, and Sequoia Capital were among the company’s high-profile investors, and all three subsequently wrote down their interests to zero.
Nickel Digital is one of the companies suffering from the effects from FTX. FTX exposure is held by Crypto.com, Genesis, Galaxy Digital, and Vauld.
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.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Chubbi
Coincu News
Canada extends crypto compliance deadline to the end of 2024, giving exchanges more time to…
This article will explore which cryptos are considered securities, and how you can navigate the…
Score a 50% bonus on BDAG purchases! Explore how BlockDAG's presale exceeded $77M, delve into…
This is the most thrilling time for every crypto enthusiast, and for good reason, there…
Spot Bitcoin ETF inflows hit $494 million on September 27 with over $1 billion this…
Binance founder CZ marked his return to social media with a tweet greeting the crypto…
This website uses cookies.