A top executive at a crypto asset management firm says the company has sold its multi-million dollar claim in FTX’s bankruptcy.
In a long thread, says Travis Kling, Chief Investment Officer of Ikigai Asset Management tells His 98,100 followers on the social media platform
“Ultimately, the decision about whether to sell the claim was largely a function of opportunity cost – how much do you think the claim price would rise in the future, versus taking the money now and putting it into something else that earns a return.”
According to Kling, Ikigai was initially optimistic about the possible revival of FTX through FTX 2.0, but the company’s position changed after witnessing the mistakes made by the entities behind the bankrupt exchange.
“I was (and still am) very interested in FTX 2.0. But the Debtors have tampered with that process so badly, and progress has been so slow, that it made no sense for us to wait any longer with the claim until something might happen with 2.0.”
The Ikigai CIO goes on to say that most of the money raised from the sale will remain in the fund and that investors who want it will redeem money will be able to do this. Moreover, he says that the digital assets industry appears to be on the eve of a new bull run.
“It appears the market is well on its way to a new bull cycle. It’s kind of amazing, honestly. Despite the major and profound missteps the sector has made in recent years, it seems the world is giving this ecosystem another chance. Another opportunity to deliver real value.”
FTX originally filed for bankruptcy in late 2022 after its original assets collapsed and its founder, Sam Bankman-Fried, was accused of defrauding investors and mishandling customer funds. Last month, Bankman-Fried was found guilty of his charges and faces a total of 115 years in prison.
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Featured image: Shutterstock/Tithi Luadthong
