Express

Multiple Parties Respond To Inside Story Of Deribit Equity Trading

Tracy CHEN

Summary: According to the news on June 11, TechCrunch founder Michael Arrington released a series of tweets that revealed the inside story of the latest round of financing of the cryptocurrency exchange Deribit. He said that at the end of last year, Deribit sought a new round of financing to fund founders and early investors, with ...

According to the news on June 11, TechCrunch founder Michael Arrington released a series of tweets that revealed the inside story of the latest round of financing of the cryptocurrency exchange Deribit.

He said that at the end of last year, Deribit sought a new round of financing to fund founders and early investors, with a valuation of $280 million. Spartan Group, a Singapore-based financial advisory firm, recommended Deribit to hedge funds Arrows Capital and QCP Capital, which bought 10% of Deribit warrants.

Afterwards, the two new shareholders planned to resell these shares at a valuation of $700 million, but Spartan's fear of a damaged reputation prevented the deal. Eventually, Arrows Capital and QCP Capital reduced Deribit's valuation to $350 million, and sold Deribit's equity to third parties. The new buyer now knows that he has paid a high premium and expresses his indignation.

In response to the inside story of the financing, Spartan Group responded that it had provided consulting services for Deribit's recent strategic financing, recommended Deribit to Arrows Capital and QCP Capital. It was honoured to work with the Deribit team, and will continue to provide support to the team. SU Zhu, co-founder and CEO of Arrows Capital, said that everyone involved in the business is happy. But some people who missed the deal are a little unhappy, and we cannot satisfy everyone.

Tracy Chen