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After the announcement of Binance, the US-based Galaxy Digital company decided to withdraw $47.5 million (USD) from the bankrupt crypto exchange FTX. On Wednesday, the company executives released an earnings report that Galaxy’s partners hold digital assets and cash worth $77 million (USD) on the platform. And they said Galaxy Digital had zero exposure to FTX’s native token, Alameda Research and FTT.
According to the reports, Sam Bankmman-Fried of Alameda purchased FTT tokens at a lower price. The entity waited a long time to increase the price of FTT tokens. After some days, Alameda started borrowing “real money” using these highly inflated FTT tokens as collateral. FTT lost up to 90% of its value this week. It led Binance to pull out of the bailout deal with FTX.
Michael Novogratz, CEO of Galaxy Digital, stated, “the company began taking risk down from sunday night about $47.5 million (USD) is currently in the withdrawal process, and he noted Galaxy is a hopeful yet cynical depositor.”
Michael Novogratz said he was disappointed with Sam Bankman-Fried, the former FTX CEO. Michael further added that he maintained a good relationship with FTX before the entity’s downfall.
Novogratz stated, “What’s painful about this is that Sam Bankman-Fried spent so much time in DC. It wasn’t that what he was saying was crazy.” He added, “It’s just that if the messenger noe looks like he ran his ship into an iceberg. It’s just going to anger the people he spent time with and slow this down some.”
Galaxy Released Its Third Quarter Earning Reports
Recently, Galaxy released its third-quarter earnings reports. Michael said the result was awful. In Q3 earnings, the entity faced a loss of $68 million (USD) when compared to Q1 and Q3 are $112 million (USD) and $555 million (USD), respectively. The executives stated that Galaxy retains $1.5 billion (USD) in liquidity, including $1 billion (USD) in cash.
Due to the huge loss in Q3 earnings, Galaxy decided to remove 15% of its workforce from its platform. “It is always painful to let people go, but I think we have right-seized the ship and feel good about that,” Michael stated.
Recently, Micheal noted that Ethereum-based NFT creators would pay nearly $1.8 billion (USD) in royalties from secondary sales on marketplaces like OpenSea. The creators can choose how much percent of royalties they would like to receive from secondary sales while mining NFT projects through OpenSea.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
