FTX's $1.4 Billion Bid for Voyager Digital Assets: Gamble or Endgame for Users?
FTX has offered $1.4 billion for the assets of Voyager Digital, seeking to offer users a way out if they switch to its platform, but there are risks.
Analysis
In September, cryptocurrency exchange FTX US won the winning bid for the assets of struggling cryptocurrency brokerage Voyager Digital with a bid of around $1.4 billion. The offer consisted of the fair market value of Voyager's crypto holdings "as of a date to be determined in the future".
According to Voyager, at current market prices, the fair value of its holdings was estimated to be approximately $1.3 billion, and the agreement included an "additional consideration", estimated to be approximately $111 million.
Since then, new details of the case have emerged, with court documents showing that the money paid for Voyager Digital itself was just $51 million. According to filings, the $1.31 billion in FTX offered for Voyager crypto holdings should be distributed to eligible credits on a pro-rata basis.
The $111 million included in the deal is, therefore, split between the $51 million paid for Voyager's assets, intellectual property and user base, and the $60 million into a cumulative account credit of $50 for each user that onboards with FEX and a $20 million earnout.
Voyager users seek answersAs news of FTX's winning bid spread through court documents and other rare sources, users of the bankrupt company continue to search for answers, organizing via social media to rack up as much information as possible.
Initial calculations made by users considering Voyager's balance sheet suggest that users switching to FTX can expect to earn a discount of over 30% on the assets they hold. For some, it is better to see any type of return than to see nothing after the platform goes bankrupt.
Travel Digital review. Source: Reddit, SedarFTX CEO Sam Bankman-Fried said his offerings are "generally determined by the fair market price" with the company buying...
FTX has offered $1.4 billion for the assets of Voyager Digital, seeking to offer users a way out if they switch to its platform, but there are risks.
Analysis
In September, cryptocurrency exchange FTX US won the winning bid for the assets of struggling cryptocurrency brokerage Voyager Digital with a bid of around $1.4 billion. The offer consisted of the fair market value of Voyager's crypto holdings "as of a date to be determined in the future".
According to Voyager, at current market prices, the fair value of its holdings was estimated to be approximately $1.3 billion, and the agreement included an "additional consideration", estimated to be approximately $111 million.
Since then, new details of the case have emerged, with court documents showing that the money paid for Voyager Digital itself was just $51 million. According to filings, the $1.31 billion in FTX offered for Voyager crypto holdings should be distributed to eligible credits on a pro-rata basis.
The $111 million included in the deal is, therefore, split between the $51 million paid for Voyager's assets, intellectual property and user base, and the $60 million into a cumulative account credit of $50 for each user that onboards with FEX and a $20 million earnout.
Voyager users seek answersAs news of FTX's winning bid spread through court documents and other rare sources, users of the bankrupt company continue to search for answers, organizing via social media to rack up as much information as possible.
Initial calculations made by users considering Voyager's balance sheet suggest that users switching to FTX can expect to earn a discount of over 30% on the assets they hold. For some, it is better to see any type of return than to see nothing after the platform goes bankrupt.
Travel Digital review. Source: Reddit, SedarFTX CEO Sam Bankman-Fried said his offerings are "generally determined by the fair market price" with the company buying...
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