On November 8, 2022, Brad Mills stated that the Ontario Teachers’ Pension Plan (OTTP), one of the major investors on the FTX platform, invested when it was valued at $32 billion.
🚨Ontario Teachers Pension Plan invested in FTX at a THIRTY TWO BILLION valuation. 😱😱😱
🚨Quebec Pension Fund invested in Celsius.
— Brad Mills 🔑⚡️ (@bradmillscan) November 8, 2022
The famous Bitcoiner and board member of Geyser Grants made this comment on his Twitter page early in the day.
OTTP had initially invested $420 million in FTX along with Sequoia, Tiger Global, and LightSpeed Venture Partners as part of a global funding scheme.
They made this decision because they felt FTX Trading had minimal risk compared to other crypto assets.
Many felt the decision was terrible, not because FTX was unreliable but because the crypto market was very volatile and unpredictable at that time.
Nevertheless, OTTP was confident, and their CEO, Jo Taylor, was very optimistic, stating business is performing well on the exchange.
When the exchange was launched in 2019 by Sam Bankman Fried, it was valued at $25 billion but rose to $32 billion after a $400 million funding that occurred earlier this year in January.
The investors included Softbank, OTTP, Temasek Holdings, and others.
However, the ongoing lawsuits against Alameda Research, a platform owned by Sam Bankman Fried, have dramatically affected the platform, leading to a loss in value.
Several platforms have withdrawn from the exchange, including the CEO of Binance, Changpeng Zhao, and Jump Trading, a research platform.
All this chain of events has led to FTX dipping into its reserve to keep its platform stable. According to a tweet by Joe Consorti, a crypto market analyst, $400 million has disappeared in less than an hour after analyzing the FTT market chart.
Further additional $200 million will evaporate as an intervention to save the exchange. Within 2 hours, another $500 million worth of FTT evaporated.
Joe went on to say that FTX and Alameda are the buyers because they can’t print money and are therefore depleting their reserves to help the token and platform stabilize.