Sway Funded has acquired another struggling prop firm. According to detailed information provided by moderators on Sway Funded's Discord server, the company has decided to take over its troubled competitor Karma Prop Traders, along with its clients and active challenges. For Sway Funded, this marks yet another acquisition of a prop firm facing liquidity issues within the past few weeks.
Karma Prop Traders Acquired by Sway Funded
Reports indicate that Sway Funded's customers received an email last night (Wednesday) informing them that the prop firm they use had purchased its competitor Karma Prop Traders, which had announced solvency and liquidity issues earlier this month.
A Discord user with the pseudonym Bunny wrote on Sway Funded's server: "I just received an email from Sway stating that Karma has been acquired by Sway Funded." Although the prop firm has not officially confirmed this information, statements from moderators on the company's official channels strongly suggest this.
Around noon, a moderator using the pseudonym Cy stated that there was no official news yet, but added: "Any updates regarding Karma, you'll hear from us."
Another moderator, nicknamed Rodri, was more forthright, acknowledging that users "will soon receive specific instructions and exact information via email."
He added: "Sway has stepped in to rescue all those traders who had outstanding accounts and unpaid funds with Karma."
Although Karma operated in the prop trading market for only a short time, it quickly won the favor of investors, introducing Match-Trader with TradingView integration into its product just months after launch.
Karma's Quick Start and Rapid End in Prop Trading
The company's troubles began two weeks ago when founder Eshan Balapatabendi announced the company was facing liquidity issues and needed to cease further operations.
Balapatabendi stated on the official Discord channel: "I created Karma to build something transparent and sustainable, and unfortunately, many obstacles stood in our way, leading us to become unsustainable." s
Balapatabendi attributed the failure to excessive spending on internal technology and "cheaters" exploiting loopholes in challenges, which allegedly put the company in financial distress.
Although he initially claimed not to consider selling his business to another prop firm, by last weekend, there were reports that Karma was in "advanced talks" with potential buyers.
Balapatabendi stated on the company's official Discord: "KARMA is currently in advanced talks with a leading prop firm in the industry for a possible acquisition, a company that appreciates our transparency and sees the immense benefits of the community we've built."
It is now known that this company was Sway Funded.
Sway Funded Rescues Another Prop Firm Again
As it turns out, this is not Sway Funded's first acquisition in recent weeks. As reported by Finance Magnates at the end of July, the company also reached an agreement with MyFlashFunding, which had encountered platform issues.
Information provided by both companies indicated that MyFlashFunding's clients had been transferred to Sway Funded.
The announcement regarding the acquisition decision stated: "We understand the importance of a smooth transition, and MyFlashFunding traders will be seamlessly migrated to the Sway Funded platform, ensuring they can continue their trading journey without interruption."
New prop firms are rapidly emerging and failing just as quickly, with only the strongest surviving in the market. Despite some consolidation taking place, data from Devexperts shows that there's no shortage of people willing to try their hand in this industry. Over the past 12 months, the trading platform provider has supplied its DXtrade service, which is also their own trading tool, to more than 40 prop firms.
Reference：Breaking: Sway Funded Acquires Another Struggling Prop Firm within a Month
