After several years of investing in cryptocurrency ventures, Said Gutseriev decided to finally sell his shares in Currency.com and Capital.com to none other than his former business partner Viktor Prokopenya, an entrepreneur and founder of an investment company known as VP Capital.
On the other hand, Said’s shares in Zubr.io were acquired by FTX, making it a different transaction. The selling of shares symbolized the end of joint projects between VP Capital and Larnabel ventures as both investors chose to go their separate ways.
— the bitcoin party news feed (@bitcoinpartyall) August 18, 2021
An Overview of the Participant Companies
- VP Capital: This global investment firm was established in 2012 with headquarters in London, England. VP Capital’s main focus is on the technology industry (Artificial Intelligence, Fintech and Blockchain) with venture capital investments primarily in the financial and information technology sectors.
- FTX: This is a cryptocurrency exchange that supports derivatives, spot market and securities trading.
- Larnabel Ventures: Founded in 2016, Larnabel Ventures is an investment firm that was established with the aim of supporting entrepreneurs to grow their businesses in various fields such as gambling, consumer technology, finance and retail.
A Breakdown of The Transactions
First, before we delve deeper into the transactions, it is worth bringing to your attention that while the final transaction amount is not disclosed, all the involved parties have confirmed the transactions.
According to the market experts, the total market value of projects stands at $610 million (as of mid-2021), with the value of Currency.com estimated at $500 million, Capital.com at $100 million and that of Zubr.io at $10 million.
With that said, here is a detailed breakdown of the transactions and what you need to know:
- In 2017, Said Gutseriev, the founder of Larnabel Ventures actively began investing in blockchain and cryptocurrency investments.
- In the same year (2017) Viktor Prokopenya and Said Gutseriev joined hands and together invested $12.5 million in Capital.com, an AI-focused trading business. In 2019, this venture became an infrastructure business transforming into Currency.com, the first authorized cryptocurrency trading platform in the CIS with legal entities across Belarus, Gibraltar and Great Britain.
- Correspondingly, In 2017, Said Gutsereiv and Viktor Prokopenya took it upon themselves and invested $25 million in Capital.com on a uniformity basis. This came after the establishment of Capital.com by Viktor Prokopenya in 2016.
- In 2018, following the success of Capital.com, Said Gutseriev put some skin in the game and launched Zubr.io – a cryptocurrency derivatives exchange, investing $4 million in the company.
- In 2019, utilizing the technology developed by Capital.com, Currency.com (Europe’s first regulated exchange platform for trading cryptocurrencies) was created and launched by Viktor Prokopenya’s team. Upon its establishment, Said Gutseriev became a co-investor on the same parity basis as in the case of Capital.com with $10 million said to have gone into the project (Currency.com) launch, based on various reports.
- Said Gutseriev’s joint projects grew rapidly catching the attention of investors across the globe which now prompted him to negotiate with VP Capital at the start of 2020. The negotiations were about him selling off his shares in Currency.com and Capital.com to a potential buyer.
- During the summer of 2020, the pertinent fillings were submitted to various regulatory bodies such as the Cypress Securities and Exchange Commission, the UK Financial Conduct Authority and the Gibraltar Financial Services Commission.
- During the summer of 2021, after processing and receiving of the necessary documents from the regulatory bodies, the deal was finally concluded, whereby Viktor Prokopenya bought Said Gutseriev’s stakes in Capital.com and Currency.com.
- In the spring of 2021, Said Gutserieve decided to exit from all his cryptocurrency projects. It was during this time whereby he sold his stake in Zubr.io to FTX international crypto exchange which had raised over $420 million to acquire projects and buy new companies.
It didn’t stop at selling stakes in Zubr.io. Said Gutserive proceeded to sell off his other assets to investors in the private sector, including Larnabel Ventures’ share in Banuba (initially co-partnered by VP Capital) resulting in no current projects between VP Capital and Larnabel Ventures.
What Investors Have to Say
Following Said Guteriev’s discontinuation of his ventures, investors have come out, each with a different comment regarding the projects. Eldar Vagapov, the managing partner of Larnabel Ventures says, “We gratefully acknowledge the help of VP Capital to foster the growth of our joint projects.” Not to forget, Currency.com and Capital.com are among the industry pioneers in regulated digital currency exchanges and investing software.
Viktor Prokopenya, founder and shareholder of Capital.com, Currency.com and VP Capital says, “We commend each of our company partners for several years of productive collaboration that have enabled us to solidify the top management positions of the companies we invest in while attaining remarkable outcomes.” According to the VP Capital spokesman, the company intends to make intentional investments in the cryptocurrency industry in a few years.
Lastly, it is worth mentioning that after selling off his shares in three crypto exchanges to Viktor Prokopenya, his shares in Zubr.io to FTX and all his assets including Larnabel Ventures, Said Gutserieve has not given up on the cryptocurrency sector. He has since then maintained a positive viewpoint on the cryptocurrency industry intending to pursue further investments in the crypto world as time goes by.