Samsung Next, a Samsung investment subsidiary, is the latest victim of FTX’s demise after investing in the exchange during a fundraising round last year. The amount the company contributed to FTX’s $420 million capital round is unknown, but the electronics giant is encountering issues with its investment.
There are six industries that this Samsung subsidiary usually invests. Those industries include healthcare, artificial intelligence (AI), fintech, media technology, infrastructure, and blockchain.
One of its most prominent investments was in FTX. Hence, the company joined many other businesses impacted negatively by the FTX collapse. Other notable companies include Tiger Global, Sequoia Capital, BlockFi, Softbank, and Temasek.
Nevertheless, the company acknowledged that its investment in the FTX exchange was modest compared to its operational funds. As a result, there is no need to worry about how it operates.
The market is still under fire due to the crash of the FTX crypto exchange. The crypto market continues to suffer the consequences of the FTX crash.
However, the possibility of hearing this kind of news will decrease as time passes. Yet, the damage it has caused is massive already.
Thus, it has forced regulators to tighten their approach to bringing in stricter regulations to guide the market.
Samsung Next was founded in 2013, with its main office in Silicon Valley. It is a company that invests much in tech and is known for innovation.
Several firms in the blockchain and cryptocurrency sectors are part of its investments. It has invested in several cryptocurrency businesses.
The most popular ones are Alchemy, Flow, SuperRare, CryptoKitties, ImmuneFi, and Dapper Labs. Samsung Next claimed that it believes the FTX crypto exchange is on the front edge of Web3 after investing in the company last year.
After the investment, Samsung Next complimented FTX for being controlled and efficient in its objective. However, after the demise of FTX and the loss of its investment, the electronics giant has not made many statements.
Top Investors Write Off Their FTX Investments
Meanwhile, some investors, especially investment firms such as Paradigm and Sequoia, have chosen to write off their FTX investments. The Ontario Teachers’ Pension Plan also made a similar move but came under fire for making such a move.
Although the Pension Plan had invested $95 million, it claimed that writing off its FTX investment would not significantly harm its financial bottom line.
The fall of FTX has caused a loss of trust towards the cryptocurrency industry as a whole. Hence, crypto companies need to unite to restore this trust.
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