Electric Capital: Issues found during due diligence on Serum (SRM), limited exposure to FTX

ChainCatcher news, according to Blockworks, Electric Capital executives told their limited partners on Thursday that Electri was minimally affected by the FTX collapse, with limited exposure to FTX, thanks to Electric's identification of "yellow flags" during due diligence.

Electric had questioned the tokenomics of Serum's token SRM, which had a circulating supply of about 10% at the time of issuance. All presale, team, and contributor tokens will be unlocked over the next one to seven years. Electric believed that SRM lacked liquidity, and low circulation would limit supply, thereby driving up prices. As a result, Electric abandoned its investment in SRM and later decided not to invest in FTT.

According to Electric, the company has no equity in FTX and has not engaged with FTT, SRM, or Solana's SOL tokens. Electric has never had any business dealings with Bankman-Fried's Alameda Research. Currently, the company has 8 bitcoins held by FTX. One of the venture funds invested by Electric Capital has FTX assets from two unnamed startups, with a risk exposure of about $700,000. (Blockworks)