Home Crypto  Liquid Meta Hit by FTX Fallout

 Liquid Meta Hit by FTX Fallout

by S. Jack Heffernan Ph.D

 Liquid Meta Capital Holdings Ltd. (“Liquid Meta” or the “Company“) (NEO: LIQD) (FRANKFURT: N5F) (OTCQB: LIQQF) a decentralized finance infrastructure and technology company focused on bridging the gap between traditional and decentralized finance, today announced its financial results for the three-months ending November 30, 2022.

All dollar figures are in United States dollars (“USD”), unless otherwise stated.

Q2 2023 Highlights

  • Total Reward Tokens and Trading Fee revenues of $326,738 for the three months ended November 30, 2022.
  • Realized and unrealized loss of $1,010,789 for three-months ended November 30, 2022, due in a large part to short positions on FTX that were inaccessible during a period of significant volatility leaving long positions outside of FTX exposed.
  • Quarterly net revenues excluding FTX exposure of $(719,758).
  • Net operating loss of $1,696,777 resulting in net loss of $5,609,376, with $3,912,599 (net exposure) due to the collapse of the second largest crypto currency exchange FTX.
  • Net loss per share of $0.10.
  • Total Shareholders’ Equity of approximately US$15.4 M (CAD$20.8 M) or US$0.29 (CAD$0.39) per share
  • Deployed capital across 10 blockchains, 26 different decentralized platforms and 5 different strategies
  • Additional details on FTX Bankruptcy impact on Liquid Meta
    • On November 11, 2022, the company’s founder and CEO stepped down from the company and FTX had filed for bankruptcy.
    • Liquid Meta had $4.9 M in total deposits on the FTX platform at the time of the ‘bank-run’. The company was unable to withdraw its deposits ahead of the halting of activity on the exchange and subsequent bankruptcy.
    • Net exposure to FTX was $3.9 M
    • Liquid Meta is exploring all options to have any of its funds returned as part of the FTX bankruptcy process and will update investors on any developments.
  • At the end of Q2 Liquid Meta had exited most of its positions in DeFi, had no material exposure to any Centralized Exchanges (CEX’s) and had moved most of its balance sheet to a traditional financial institution until management is comfortable to redeploy its fiat holdings back into DeFi.
  • Subsequent to quarter end, the company announced that its Board of Directors had initiated a process to evaluate potential strategic alternatives to maximize shareholder value. As part of the process, the Board will consider a range of options that may include, but are not limited to, a sale, merger, divestiture, return of capital, other strategic transactions, or continuing to operate as an independent public company.

“The operating environment in crypto year-to-date has been the most challenging for the industry since its inception.  Crypto and DeFi markets have been exposed to a global macro environment that has resulted in a ‘risk-off’ backdrop due to rising inflation and higher interest rates globally. The war in Ukraine, the lingering effects of continued pandemic lockdowns in China and less than ideal fiscal policies set by central banks have all contributed to the industry’s difficulties during 2022. More specifically, security issues in crypto / DeFi and the collapse of several Centralized Crypto trading platforms like FTX has resulted in a fundamentally challenged operating environment” said Jonathan Wiesblatt, CEO of Liquid Meta. “However, with all the negative headwinds facing the industry we still believe that products and services offered in crypto are not only going to continue to grow but will become more vital to the global financial ecosystem in the future. Decentralized applications have continued to outperform its counterparts in Centralized Finance (CeFi) given the consistent performance of the smart contracts, the open and transparent nature of all transactions and the removal of human subjectivity in financial transaction decisions” added Mr. Wiesblatt.

Liquid Meta is a DeFi focused infrastructure and technology company. The Company had a liquidity mining operation where it generated returns through deployment of its own balance sheet on a variety of blockchains and decentralized applications. The Company was also developing technology to bridge the gap between traditional finance and the emerging open financial protocols being built in Web3 and has paused this activity as part of its strategic review process. This technology is designed to make on-chain operations simpler, safer, and more efficient for traditional financial institutions to access Web3.

Financial Statements and MD&A

Liquid Meta’s financial Statements for the quarter ended November 30, 2022 and Management’s Discussion and Analysis (the “MD&A”) for the three months ended November 30, 2022 are available on SEDAR at www.sedar.com

About Liquid Meta

Liquid Meta is a decentralized finance infrastructure and technology company that is powering the next generation of open-access protocols and applications. The Company is creating the bridge between traditional and decentralized finance while ushering in a new era of financial infrastructure that benefits anyone, anywhere.

To learn more visit Website | LinkedIn Twitter 

You may also like


Your Trusted Source for Capital Markets & Related News

© 2023 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.