Mysten Labs announced the reacquisition of a stake formerly owned by FTX for around $96 million. The repurchase includes the equity stake of the infamous cryptocurrency exchange company and preemptive rights to purchase SUI token.
Mysten Labs, a company focused on web3 infrastructure and the developer of the Sui Layer 1 blockchain, has reported the repurchase of an equity stake and warrant rights to acquire SUI tokens, which were formerly owned by FTX Ventures Ltd. and its associates. The purchase, which amounts to roughly $96 million, was approved by the United States Bankruptcy Court for the District of Delaware in accordance with the Chapter 11 bankruptcy filing of FTX.
The Agreement
As part of the agreement, Mysten Labs has regained full control of its equity stake and all warrant rights related to SUI tokens purchase that were both held by FTX Ventures Ltd. previously. These holdings were acquired by FTX through Mysten’s Series B fundraising round, a $300 million funding effort that was made public in September 2022.
Mysten Labs Co-Founder and Chief Executive Officer Evan Cheng expressed his satisfaction with the transaction and his company’s confidence in its capabilities, technology, and partnerships. The deal also provides Mysten with greater flexibility in how it operates its business while enabling it to continue scaling its platform and collaborating with innovative web3 companies worldwide.
Mysten Labs
Mysten Labs is made up of a team of experts proficient in distributed systems, programming languages, and cryptography, and was established by former senior executives of Meta’s Novi Research. The founders also played key roles in developing the Diem blockchain and Move programming language. The primary aim of the company is to establish a foundational infrastructure for the web3 ecosystem.
SUI Tokens
SUI tokens are the native tokens of the Sui blockchain, which is a PoS-powered, permissionless Layer 1 blockchain designed to support Web3 and NFTs. The blockchain was founded by Mysten Labs, an infrastructure organization led by former executives of Meta’s Novi Research.
The SUI token’s total supply is ten billion tokens, and it serves various functions, including staking, paying gas fees, and on-chain voting. Sui’s blockchain tokenomics model has three key participants: users, SUI token holders, and validators. Sui’s blockchain is made up of objects, transactions, and validators, and its Move programming language, which is similar to Rust, is used to create Sui-compliant Web3 contracts.
The Sui blockchain’s parallel execution system enables users to perform many transactions simultaneously, with a transaction speed of up to 120,000 transactions per second, while its gas fee system is unique in its ability to handle gas fees. Sui aims to eliminate middlemen and facilitate seamless integration and interaction among users, Dapps, and digital assets.
Final Thoughts
By regaining control of its equity stake and warrant rights, Mysten Labs can make independent decisions regarding the development and future direction of the Sui blockchain without any or less external influence. This will allow the company to execute its vision more effectively and efficiently, leading to faster innovation and development of the blockchain ecosystem.
Furthermore, having control over its equity stake and warrant rights will provide Mysten Labs with greater financial stability and control, which can be reinvested into the development of its platform and partnerships with other companies.