Sam Bankman-Fried makes statement even as new boss begins formal bankruptcy process
However, that spreadsheet also suggested some of the “less liquid” $5.5bn could prove hard to turn into cash for the company’s creditors. More than $2bn of the assets the company holds are in a crypto token called serum, the underlying token of a decentralised exchange launched by FTX in 2021.
Despite valuing its holdings of the token at $2.2bn, and claiming they were worth more than $5bn only a few weeks earlier, the total implied market capitalisation of all freely trading serum is only $80m. It would be hard for FTX or its creditors to sell 25 times more serum than had ever previously been traded at anywhere near the current market price, or at all.
Serum’s market value is also closely tied to the fortunes of FTX. Although the serum exchange is “decentralised”, it is in practical terms controlled by FTX, which holds the vast majority of governance tokens and the right to mint new ones – a right it has already exercised twice in the past. Despite being ousted as the chief executive, Bankman-Fried continues to try to raise capital for a rescue package for the exchange. “What can I try to do? Raise liquidity, make customers whole, and restart. Maybe I’ll fail. Maybe I won’t get anything more for customers than what’s already there,” he said.
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