FTX Paid 94% of $84M Blockfolio Deal in 2020 with FTT: The Inside Story

The implosion of FTX continues to reveal shocking details about its past financial dealings. One of the most notable examples is the acquisition of the trading platform Blockfolio. But what many are just learning is *how* FTX funded this $84 million deal.

The Blockfolio Acquisition: A Deep Dive into FTT Payments

Reports indicate that a staggering 94% of the $84 million FTX paid for Blockfolio in 2020 was made using its own exchange token, FTT. This raises significant questions about the true value and stability of the acquisition.

Financial statements, as reported by Bloomberg, confirm that FTX, the bankrupt cryptocurrency exchange, used a token it invented – FTT – to fund the acquisition. Further analysis shows that When now-defunct crypto exchange FTX acquired the portfolio tracking platform Blockfolio, the majority of the payment leveraged FTT.

FTT: More Than Just a Token?

The SEC has asserted that FTT is a security. This assertion is based, in part, on the fact that FTX used profits from its token sale to, in this case, acquire other businesses and assets. The collapsed cryptocurrency exchange FTX reportedly paid 94% of the Blockfolio stake with FTT tokens, highlighting the coin\'s central role within the FTX ecosystem and its use in major corporate transactions.

Unpacking the Controversy

With every passing day, new revelations regarding FTX and its past practices are emerging. The fact that 94% of the $84 million used in the Blockfolio acquisition was paid in FTT raises serious concerns about the valuation methods employed and the potential conflict of interest. The bankrupt cryptocurrency exchange FTX used its own token, FTT, to fund the purchase, showcasing the heavy reliance on its own internally created asset.

This news underscores the intricacies and potential risks associated with cryptocurrency valuations and acquisitions, especially those involving exchange tokens.