Prominent Silicon Valley firm Sequoia Capital recently invested hundreds of millions of dollars in crypto exchange FTX, despite the exchange’s recent collapse. The move shows a strong faith in the promise of the exchange, even as it has gone through a tumultuous period.
As the crypto market has grown, the demand for crypto trading platforms has increased. This led to the rise of FTX, which in its heyday was one of the most popular exchanges on the market. It attracted a large number of investors, including some prominent Silicon Valley firms.
Sequoia Capital is one such firm, and it has put its faith in FTX, investing hundreds of millions of dollars in the exchange. Sporting shorts and t-shirts to show their confidence in the platform, the firm has shown a strong belief in the future of FTX.
A lifelong New England Patriots fan who idolized Tom Brady also invested nearly his entire life savings in FTX after the future Hall of Fame quarterback announced that he was investing in the exchange. Brady’s investment in FTX provided inspiration for many other investors to follow suit, despite the exchange’s collapse.
Shark Tank’s Kevin O’Leary also revealed that he had invested his paycheck in FTX when he became the failed crypto giant’s largest investor. O’Leary has since lost $15 million in the collapse of the exchange, but still stands by his decision to invest in FTX.
The collapse of the exchange has led to a number of lawsuits against FTX, including one from a former investor who alleges that the exchange duped “uninformed investors” into investing. The complaint claims that FTX and its promoters misrepresented the exchange’s financial condition in order to entice investors.
Despite the collapse of FTX, Sequoia Capital’s investment shows that the firm still has faith in the exchange’s promise. The firm is betting big on the future of FTX, and the investment may pay off in the long run.
