Samsung’s investment arm Samsung Next has also suffered from the collapse of FTX. The firm participated in a $420 million funding round of FTX last year.
After it invested in the exchange in a funding round last year, Samsung is next on a long list of those suffering due to the collapse of FTX. The company’s contribution in the $420 million funding round is not known, but it is having trouble with its investment.
The investment arm of Samsung — Samsung Next — focuses on investment in six fields: artificial intelligence (AI), fintech, healthcare, infrastructure, media tech, and blockchain. FTX is one of its most notable investments.
The company now joins several others that the FTX collapse has hit, including BlockFi, Sequoia Capital, Temasek, Tiger Global, and Softbank. It did say that the amount it had invested in FTX was small compared to its total operating funds. As such, there is no reason for concern over its operations.
The FTX collapse continues to have an impact on the market, and there may be more such news in the weeks to come. The scale of the damage has caused regulators to accelerate their acceleration of controls over the market.
Samsung invests heavily in the crypto industry
The investment arm was founded in 2013 and is headquartered in Silicon Valley. It is an innovation group that has made multiple investments in technology. This includes several companies in the blockchain and cryptocurrency industry.
Among the crypto companies it has funded are Flow, Alchemy, SuperRare, CryptoKitties, Dapper Labs, and ImmuneFi. Following its investment in FTX last year, the company stated that it believed “FTX is on the leading edge of Web 3.0.”
As is expected in such statements following an investment, Samsung Next praised FTX for being regulated and effective in its purpose. The company has not said much after the collapse of FTX and the loss of its investment.
Sequoia, Paradigm, and Others Write Off Investments
Samsung Next is far from the only company affected by the FTX collapse. And it’s certainly not the worst. Some, like Sequoia and Paradigm, have decided to write off their investments completely.
The Ontario Teachers’ Pension Plan, which attracted scrutiny for its investment in FTX, is also writing the investment off. It had put in $95 million but said that its loss would have a limited impact on the plan.
The takeaway from this is that large investment firms are now paying more attention to their crypto investments. The FTX collapse has resulted in the loss of some trust in the crypto industry, and companies must work to regain it.
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Source: https://beincrypto.com/samsung-investment-arm-burnt-ftx-meltdown/