In short: Bankrupt crypto exchange FTX missed out on billions of dollars' worth of SUI tokens after selling its token warrant rights too early. FTX's management sold 890 million SUI token warrants, which would have been worth approximately $1 billion at SUI's current price. FTX had purchased equity stakes in Mysten Labs worth $101 million and warrant rights to buy over 800 million SUI tokens worth $1 million in 2022, but sold back its stake in Mysten Labs and SUI token warrant rights in 2023. The SUI token has a market cap of over $700 million, and the Sui network achieved a high throughput rate of 297,000 transactions per second in April 2023.
Our quick analysis:
Bankrupt crypto exchange FTX missed out on a huge payday when it sold its warrant rights to the SUI token too early. FTX's investment in Mysten Labs, the developer of the Sui blockchain, gave them equity stakes in the company and warrant rights to purchase over 800 million SUI tokens worth $1 million. But in March 2023, FTX announced it would sell back its stake in Mysten Labs and SUI token warrant rights, completing the repurchase deal in April for $96 million.
Unfortunately for FTX, the Sui mainnet launched on May 3, 2023, and the price of the SUI token rose to over $3.5 at launch, eventually settling at $1.33 at the time of writing. Had FTX held onto their 890 million SUI tokens, they would have been worth over $1 billion.
The Sui network utilizes the proof-of-stake (PoS) mechanism and boasts impressive speed and scalability, achieving a high throughput rate of 297,000 transactions per second (TPS) with 100 validators. The SUI token currently has a market cap of over $700 million, making it a top 100 token, and the fully diluted valuation (FDV) stands at $13.3 billion.
FTX's missed opportunity serves as a cautionary tale for investors, reminding us that timing is everything in the fast-paced world of crypto. While FTX may have lost out on a potential billion-dollar windfall, the Sui blockchain and SUI token continue to thrive, paving the way for the future of decentralized finance.
Our quick analysis:
Bankrupt crypto exchange FTX missed out on a huge payday when it sold its warrant rights to the SUI token too early. FTX's investment in Mysten Labs, the developer of the Sui blockchain, gave them equity stakes in the company and warrant rights to purchase over 800 million SUI tokens worth $1 million. But in March 2023, FTX announced it would sell back its stake in Mysten Labs and SUI token warrant rights, completing the repurchase deal in April for $96 million.
Unfortunately for FTX, the Sui mainnet launched on May 3, 2023, and the price of the SUI token rose to over $3.5 at launch, eventually settling at $1.33 at the time of writing. Had FTX held onto their 890 million SUI tokens, they would have been worth over $1 billion.
The Sui network utilizes the proof-of-stake (PoS) mechanism and boasts impressive speed and scalability, achieving a high throughput rate of 297,000 transactions per second (TPS) with 100 validators. The SUI token currently has a market cap of over $700 million, making it a top 100 token, and the fully diluted valuation (FDV) stands at $13.3 billion.
FTX's missed opportunity serves as a cautionary tale for investors, reminding us that timing is everything in the fast-paced world of crypto. While FTX may have lost out on a potential billion-dollar windfall, the Sui blockchain and SUI token continue to thrive, paving the way for the future of decentralized finance.
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Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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