According
to details provided by moderators on Sway Funded’s Discord server, the company
has decided to acquire its struggling competitor, Karma Prop Traders, taking
over its clients and their active challenges. For Sway Funded, this marks
another acquisition of a prop firm facing liquidity issues within the past few
weeks.
Sway Funded
clients reportedly received emails yesterday evening (Wednesday) informing them
that the prop firm they use has purchased its competitor Karma Prop Traders,
which announced solvency and liquidity problems earlier this month.
“I
just got a mail from sway that Karma is acquired by Sway Funded,” wrote a
Discord user with the pseudonym Bunny on Sway Funded’s server. Although the
information has not yet been officially confirmed by the prop firm, statements
from moderators on the company’s official channel strongly suggest this.
Around
noon, a moderator using the pseudonym Cy stated that there was no official
information yet, but added, “You will hear from us for any update
regarding anything from Karma.”
Another
moderator, nicknamed Rodri, was more forthcoming, admitting that users should
“be hearing instructions and exact information very soon via email.”
“Sway
has come to the rescue for all those traders who had outstanding accounts and
outstanding payouts with Karma,” he added.
Source: Discord
Although
Karma operated in the prop trading market for only a brief moment, it quickly
gained investors’ sympathy, introducing
Match-Trader integrated with TradingView to its offering just a few months
after launch.
Karma’s Quick Start and
Swift End in Prop Trading
The
company’s troubles began
barely two weeks ago when Founder Eshan Balapatabendi announced liquidity
problems and the need to halt further operations.
Eshan Balapatabendi, the Founder of Karma
“I
started Karma to build something transparent and sustainable,”
Balapatabendi commented on the official Discord channel. “Unfortunately,
there were a lot of roadblocks in the way which has caused us to be
unsustainable.”
Balapatabendi
blamed the failure on excessive spending on in-house tech and
“cheaters” exploiting loopholes in challenges, which allegedly drove
the company into financial trouble.
Although he
initially claimed he wasn’t considering selling his business to another prop
firm, by the end of last week, information emerged that Karma
was in “advanced negotiations” with a potential buyer.
“KARMA
is currently in an advanced stage of negotiations with a leading Prop Firm in
the industry regarding a possible acquisition. The Company appreciates our
transparency and sees huge benefits to the community we have built,”
Balapatabendi commented on the firm’s official Discord.
It’s now
known that the company in question is Sway Funded.
Sway Funded Rescues
Another Prop Firm
As it turns
out, this isn’t Sway Funded’s first acquisition in recent weeks. As Finance
Magnates reported in late July, the company also reached
an agreement with MyFlashFunding, which had been struggling with platform
issues.
Information
provided by both companies indicated that MyFlashFunding clients were
transferred to Sway Funded.
“We
understand the importance of a smooth transition. MyFlashFunding traders will
be seamlessly migrated to the Sway Funded platform, ensuring they can continue
their trading journey without disruption,” stated the announcement
regarding the acquisition decision.
WE HAVE SOME EXCITING NEWS TO SHARE ⚡
Sway Funded is expanding, and we’re thrilled to announce that MyFlashFunding has been acquired by Sway Funded.
Migration of Existing Accounts:
All clients will be migrated and taken care of by Sway Funded, and all pending payouts will… pic.twitter.com/UQgK4z1Kvf
— MyFlashTrading (@myflashfunding) July 22, 2024
New prop
firms are emerging rapidly and failing just as quickly, with only the strongest
surviving in the market. Although some consolidation is taking place, data from
Devexperts shows no shortage of those willing to try their hand in this
industry. Over the past 12 months, the trading platform provider onboarded
over 40 prop firms to DXtrade, its own trading tool
According
to details provided by moderators on Sway Funded’s Discord server, the company
has decided to acquire its struggling competitor, Karma Prop Traders, taking
over its clients and their active challenges. For Sway Funded, this marks
another acquisition of a prop firm facing liquidity issues within the past few
weeks.
Sway Funded
clients reportedly received emails yesterday evening (Wednesday) informing them
that the prop firm they use has purchased its competitor Karma Prop Traders,
which announced solvency and liquidity problems earlier this month.
“I
just got a mail from sway that Karma is acquired by Sway Funded,” wrote a
Discord user with the pseudonym Bunny on Sway Funded’s server. Although the
information has not yet been officially confirmed by the prop firm, statements
from moderators on the company’s official channel strongly suggest this.
Around
noon, a moderator using the pseudonym Cy stated that there was no official
information yet, but added, “You will hear from us for any update
regarding anything from Karma.”
Another
moderator, nicknamed Rodri, was more forthcoming, admitting that users should
“be hearing instructions and exact information very soon via email.”
“Sway
has come to the rescue for all those traders who had outstanding accounts and
outstanding payouts with Karma,” he added.
Source: Discord
Although
Karma operated in the prop trading market for only a brief moment, it quickly
gained investors’ sympathy, introducing
Match-Trader integrated with TradingView to its offering just a few months
after launch.
Karma’s Quick Start and
Swift End in Prop Trading
The
company’s troubles began
barely two weeks ago when Founder Eshan Balapatabendi announced liquidity
problems and the need to halt further operations.
Eshan Balapatabendi, the Founder of Karma
“I
started Karma to build something transparent and sustainable,”
Balapatabendi commented on the official Discord channel. “Unfortunately,
there were a lot of roadblocks in the way which has caused us to be
unsustainable.”
Balapatabendi
blamed the failure on excessive spending on in-house tech and
“cheaters” exploiting loopholes in challenges, which allegedly drove
the company into financial trouble.
Although he
initially claimed he wasn’t considering selling his business to another prop
firm, by the end of last week, information emerged that Karma
was in “advanced negotiations” with a potential buyer.
“KARMA
is currently in an advanced stage of negotiations with a leading Prop Firm in
the industry regarding a possible acquisition. The Company appreciates our
transparency and sees huge benefits to the community we have built,”
Balapatabendi commented on the firm’s official Discord.
It’s now
known that the company in question is Sway Funded.
Sway Funded Rescues
Another Prop Firm
As it turns
out, this isn’t Sway Funded’s first acquisition in recent weeks. As Finance
Magnates reported in late July, the company also reached
an agreement with MyFlashFunding, which had been struggling with platform
issues.
Information
provided by both companies indicated that MyFlashFunding clients were
transferred to Sway Funded.
“We
understand the importance of a smooth transition. MyFlashFunding traders will
be seamlessly migrated to the Sway Funded platform, ensuring they can continue
their trading journey without disruption,” stated the announcement
regarding the acquisition decision.
WE HAVE SOME EXCITING NEWS TO SHARE ⚡
Sway Funded is expanding, and we’re thrilled to announce that MyFlashFunding has been acquired by Sway Funded.
Migration of Existing Accounts:
All clients will be migrated and taken care of by Sway Funded, and all pending payouts will… pic.twitter.com/UQgK4z1Kvf
— MyFlashTrading (@myflashfunding) July 22, 2024
New prop
firms are emerging rapidly and failing just as quickly, with only the strongest
surviving in the market. Although some consolidation is taking place, data from
Devexperts shows no shortage of those willing to try their hand in this
industry. Over the past 12 months, the trading platform provider onboarded
over 40 prop firms to DXtrade, its own trading tool
