FTX Gets Largest Funding Round In Crypto History At $900 Million

Key Points

  • FTX hits 900 million in a Series B funding round
  • The company has hit an $18 Billion valuation
  • The company plans to expand its activities to include an NFT marketplace.

Raising the Funding Bar

FTX raised its valuation in a Series B funding round that broke records in the crypto industry. The company raised $900 million, which is the biggest any crypto company did over the last decade. This is also double Circle’s Series B record of $440 million, which was the biggest funding round earlier in May. The FTX funding round is to grow the company. It is also to develop new products and expand beyond its borders to capture a global audience. Expanding its payment service is one of the options considered. With the rise in NFT marketplaces, it is paramount that FTX will build its market to capture the growing interest in the internet meme and Art market.

According to the FTX report, more than 60 investors contributed to the round. The list of investors included the popular traditional venture capital firm Sequoia Capital. Others are:

Alfred Lin, partner and spokesperson for Sequoia Capital who commented on the Funding round expressed optimism that FTX has the potential to become the leading exchange in the industry.

“FTX is the high-quality, global crypto exchange the world needs, and it has the potential to become the leading financial exchange for all types of assets. Sam is the perfect founder to build this business, and the team’s execution is extraordinary. We are honored to be their partners.” He said.

The FTX Evolution

FTX was founded in 2019 by Billionaire Sam Bankman and has grown more than 75% since its series A funding in 2020. FTX exchange has a 1 million user base and runs a 24hrs trading volume of $11 billion according to Coinmarketcap.

FTX exchange is on a mission to build a world-class trading exchange that can accommodate both the professional and amateur. According to FTX official mission statement:

“FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products, including industry-first derivatives, options, volatility products, and leveraged tokens. We strive to develop a platform robust enough for professional trading firms and intuitive enough for first-time users.”

According to an FTX announcement,

“The platform serves the entire chain of cryptocurrency trading participants from retail and crypto-native investors, to sophisticated day traders, family offices, and experienced institutional traders.”

Managing the Growing Global Crypto User Base.

Coinbase Ventures which is a venture capital set up by Coinbase was on the list of funders. This raises the question of why Coinbase will fund its future competitor. The answer is based on an increasing demand by people to take part in the crypto economy. The Crypto industry has grown in exponential capacity, with a market valuation of $2.4 trillion. Coinbase may not be able to handle the increasing number of users. It is particularly obvious that FTX is moving towards being a centralized exchange. This will help Coinbase profit from two fronts, including from their competitor. This series B funding round has placed FTX in the list of the top 5 Crypto most trusted exchanges.

The Crypto Boom and Investor FOMO

In February 2021, the Crypto industry saw a tremendous surge in crypto trading activities. BTC and Altcoins became bullish, increasing global trading volume. A lot of factors contributed to this rise. Elon Musk and Tesla triggered the major boom by announcing interest in the crypto space. Major industry players reported the move as one of the factors that pushed BTC from $30,000 to double the price on March 13th. Opening up the space for institutional investments.

Since then, despite the fluctuations in market prices Investors are not backing out. They are moving deeper into space in hope of a higher profit. These factors may have contributed to the high growth in the FTX funding round, higher than its previous valuation in 2020.

The success of the FTX series B funding round will usher in new opportunities for the exchange. And New possibilities for crypto businesses.

Leave a Reply

Your email address will not be published.

Related Articles
Read More

DEXs See Record Growth As Exchange Battles Tighten

Despite the market-wide meltdown, decentralized exchange (DEX) volumes have been soaring, owing to DeFi, which continues to amaze with billions of dollars entering this new economy. Growth Experienced By DEXDespite having a low volume compared to the other DEXs, OpenSea was one of the fastest-growing,...
Read More

FTX Plans To Set Up Regional Headquarters In Dubai

Major cryptocurrency exchange FTX, recently received a virtual asset license from Dubai regulatory authorities. The platform is also planning to establish its regional headquarters in Dubai. FTX Gets Dubai Virtual Asset LicenseFTX continues its expansion into the Middle East, with the platform's European division, FTX...