Today's News |
Vancouver-based Blockchain Unicorn LayerZero Labs Loses Potential $11.5M in FTX Bankruptcy, But Maintains $134M Cash and Buys out FTX / Alameda
Monday, November 14, 2022Company Profile | Follow Company
Vancouver, BC, November 14, 2022--(T-Net)--Vancouver-based Blockchain Unicorn LayerZero Labs announced in a post that the company has lost a potential $11.5 million in company funds that were held on the FTX Cryptocurrency Exchange, that experienced a "run on the bank" of sorts, and subsequently declared bankruptcy last week.
Some amount of these funds are potentially recoverable, according to the company.
LayerZero also reported however that it remains in an exceptionally strong cash position with approxiimately $134 million in liquid assets, and a runway of no less than 7 years, under even the most aggressive assumptions.
The company says it worked around the clock to buy FTX / FTX Ventures / Alameda out of 100% of their equity position in LayerZero Labs, token warrants, and any and all agreements between the companies.
See the full letter and update issued by the company below:
Update from the LayerZero Labs front
Having been here for a very long time, this is not the first time I've seen an exchange blow up. Mt. Gox, Crytpsy, MintPal, BitFinex, Quadriga, the list goes on and on. This one definitely hits differently though, I think because we've evolved tremendously over the past decade and FTX and Sam stood at the center of what everybody seemed to be coalescing around as the future of the industry.
I want to talk about a few things around LayerZero both now and in the future. To start, we knew that being extremely well capitalized during a period like this would present some unique opportunities and these last few days certainly have. We've worked around the clock for the past 72 hours to structure an agreement and have bought FTX/FTX Ventures/Alameda out of 100% of their equity position, token warrants, and any and all agreements between us.
Separately, we've also purchased the locked STG tokens from the community auction that Alameda had and will be putting up a proposal to transfer these to the Stargate Foundation paripasu and let the community decide what to do with them.
We currently have ~$107,000,000 in direct cash balance, $27m in on-chain funds (~90% in stablecoins) for a total of $134m. We do have an additional $11.5 that was on FTX that was used operationally but for the sake of sanity we'll treat this as a $0 for the moment although presumably some amount on the dollar is likely recoverable.
This puts us in an incredibly strong position going into the next few years. We have no less than 7 years of runway even in our aggressive projections, are equity rich, and have one of the most amazing teams in all of crypto.
Competitors are cash-strapped, scared and questioning the future of the industry while we make the same bet we've always made. Throughout all of the fund blowups, dog coins, overleveraged apes and ponzis the underlying technology has never ceased to amaze us and we're all as obsessed as we have ever been with the core mission.
You've seen a lot from us in the past 6 months but I promise you the next 12 will bring an order of magnitude more. I'm here to answer any questions you have, otherwise we'll be heads down building the fabric of all on-chain digital transactions, ready for the market turn and positioning ourselves to capture everything when it does.
I'll write a more formal investor letter closer to the new year with asks and a proper progress update (long overdue).
For now I'll leave you some measures of progress below and look forward to continuing this journey with all of you. We appreciate all of your support, realize this is a tough time for many and are blessed to have such an incredible team to go through this with. These are many of the best people I've ever worked with and am extremely confident one of the strongest teams in all of crypto.
-Bryan & RAZ
About LayerZero
LayerZero is an omnichain interoperability protocol that allows dApps to build across multiple blockchains in a trustless, efficient manner. LayerZero connects dApps across chains using on-chain Ultra Light Nodes, which achieve the security of a light node with the cost-effectiveness of a middle-chain. Using the protocol, developers can turn their dapps into omnichain-applications using a single, simple interface.
Company Snapshot |
||
Vancouver (Other Tech Sectors)
|
Other Recent Company News |
|||||||||||||||||||
|