FTX and Alameda Ventures Merge Their VC Operations

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Leading cryptocurrency exchange FTX aims to absorb its venture capital arm Alameda Research, to merge the two companies to reduce the economic effects of the persistent market decline of crypto assets

Leading cryptocurrency exchange FTX aims to absorb its venture capital arm Alameda Research, to merge the two companies to reduce the economic effects of the persistent market decline of crypto assets. 

The news came from Alameda’s Chief Executive Officer Carolin Ellison, who outlined plans for the change in a recent interview with Bloomberg. The information comes after the company’s co-CEO, Sam Trabucco, announced earlier this week that he was distancing himself from the company, moving into an advisory role. 

What Do We Know About The Merger?

Sam Bankman-Fried, the CEO billionaire and founder of both companies, has denied reports of a merger. Though things remain unclear at this early stage. We know that the former partner at Alameda Research Ventures, Brian Lee, now works at FTX Ventures, the startup investment wing of the exchange. These may be the early signs of the transition taking place. 

But, things began way before now. Back in January, FTX Ventures raised $2 billion, with the fund manager stating that startup investment is concentrated entirely through FTX Ventures. The message was that the two investment companies, Alameda and FTX Ventures, act independently. Wu discussed FTX and the other two and stated, “All three are operating as separate entities.”

Where Would Things Stand After A Merger?

Alameda will focus its operations on exchange and over-the-counter trading, as well as Defi. The aim isn’t to bring the two companies closer but to consolidate things within the two businesses. The former CEO Ellison said, “We’re arm’s length and don’t get any different treatment from other market makers,” she said. “The Alameda team isn’t working too much on the venture side day-to-day.”

The companies have a history of working closely together. FTX and Alameda made a joint cash offer to purchase the struggling Voyager Digital LLC, though the offer was rejected, with Voyager saying it was a “low-ball bid.” Despite what Ellison has said, the two companies are located on the same corporate campus in the Bahamas and are owned by Bankman-Fried. We expect to hear a lot more from FTX Ventures shortly. 

Author

Nikolas Sargeant

Nik is a content and public relations specialist with an ever-growing interest in Crypto. He has been published on several leading Crypto and blockchain based news sites. He is currently based in Spain, but hails from the Pacific Northwest in the US.