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Surprisingly, Binance Labs Still Holds FTT, CZ Says

19 Nov, 20222 min readOther
Surprisingly, Binance Labs Still Holds FTT, CZ Says

Anonymous cryptocurrency analyst @frxresearch has shared the entire list of entities who invested in FTX in the seed funding round as well as in the A, B and C funding campaigns. Here's what makes one firm from the list special.

"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.

FTX's investors , all rekt except binance — frxresearch 🔶 (@frxresearch) November 18, 2022

The researcher added that all the investors on the list must be "rekt," which is equal to "wrecked" in broken English. This slang word is used by gamers as a characteristic of losing players in PvP battles, while traders and investors use it for liquidated 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 covered by U.Today previously, one of the firms on the list, Galois Capital, lost over 50% of its assets under management (AUM) due to the FTX collapse. In Q1, 2022, it was one of the few VC firms to avoid losing funds 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.

At the same time, Binance's CZ claimed that he does not consider selling FTT in any way. He is sure that such painful events do not look 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 would have worked. There will be all kind of excuses/problems anyway. And I prefer not to deal with fraudsters

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.

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