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TEXXR

Chronicles

The story behind the story

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Mysten Labs, which is developing the Sui blockchain, raised a $300M Series B led by FTX at a $2B+ valuation; all five founders worked at Meta's crypto unit

- Mysten's Series B round values the company at over $2 billion, giving investors equity and token warrants.

The Block Ryan Weeks

Context & Ripple Effects

Mysten Labs has closed the round it was shopping all summer: after sources reported in July that it was in talks for a $200M-plus Series B led by FTX Ventures at a $2B valuation, the deal landed larger — $300M from FTX itself, at over $2B, with investors taking both equity and token warrants. That is a steep climb from the $36M Series A Andreessen Horowitz led less than a year earlier, and it lands on a team where all five founders came out of Meta's crypto unit.

The lead investor matters as much as the size: FTX raised its own $400M Series C at a $32B valuation in January and is now recycling that capital into the infrastructure layer, taking warrants on Sui tokens alongside its equity stake.

First-order effects

  • Mysten Labs gets a $300M war chest and a $2B+ valuation roughly nine months after its $36M Series A, funding development of the Sui blockchain by an all-ex-Meta-crypto founding team.
  • FTX becomes Mysten's lead investor with both equity and Sui token warrants, directly tying the exchange's returns to the token it will likely trade.

Second-order effects

  • Rival exchanges face pressure to copy the FTX playbook — taking token warrants in the chains they list — because a venue holding pre-launch exposure to a token captures upside that pure listing fees never will.
  • The equity-plus-warrant structure sets a pricing template for other L1 startups: valuations now get set partly on expected token demand through exchange distribution, not just protocol technology.

Third-order effects

  • If exchanges keep leading infrastructure rounds, trading venues evolve into kingmakers of the L1 ecosystem — deciding which chains get capital, liquidity, and listing priority — concentrating power that was previously spread across VCs and foundations.
  • Token warrants inside equity rounds blur the line between venture investing and token pre-sales, a structure regulators have not yet clearly adjudicated.

The trend: Crypto exchanges are converting their own mega-rounds into strategic infrastructure stakes, binding trading venues to the blockchains whose tokens they list.