Saturday, June 10, 2023

FTX Exchange Completes $400M Investment Round


The FTX Derivatives Exchange has completed its $400 million Series C investment round, bringing its total valuation to $32 billion.

Temasek, Paradigm, Ontario Teachers’ Pension Plan Board, NEA, IVP, SoftBank Vision Fund 2, Lightspeed Venture Partners, Steadview Capital, Tiger Global, and Insight Partners are among the investors who took part in the investment round. This is according to the trading platform.

The majority of the investors in this round of funding also backed FTX.US, the company’s US division, which recently completed a $400 million fundraising round to reach an $8 billion value.

Use of the Investment

The new capital for the worldwide outfit will now develop further goods targeted at expanding the platform’s reach, according to the exchange.

This investment will support FTX’s continuous aim of delivering innovative goods and services to the marketplace. As well as increasing their worldwide reach with additional licenses around the world. This is according to Sam Bankman-Fried, Chief Executive Officer of FTX.

He stated that with the continued support of their loyal investors and userbase, FTX will look to continue communicating with regulators to provide safe and compliant access to digital assets.

They are looking forward to collaborating with their investors. This is to fulfill their purpose and maintain their rapid growth in 2022 and beyond.

How Much has FTX Received?

FTX has received a total of $1.8 billion from venture capital firms in the last six months. It solidifies its position as one of the most liquid trading platforms available. When the company concluded its Series B-1 investment round in October, it values at $25 billion. Also, its current valuation suggests that it is still growing at a rapid pace.

The round of fundraising came just a few months after the company raised $1 billion in July 2021. The Bahamas-based company’s valuation has risen to $25 billion as a result of this current investment round. It cements its status as a unicorn in the digital currency ecosystem.

The fresh funds will enhance the company’s product portfolio and grow into new areas throughout the world, according to the company.

The increased funding and group of investors, according to Ramnik Arora, Head of Product at FTX, will allow them to give the experience their consumers demand while also addressing other adjacent market opportunities such as stocks, prediction markets, NFTs, and videogame collaborations. They plan to make significant investments to enhance their regulatory coverage and grow their business.

FTX has had to alter its operations in response to regulatory challenges around the world. Thus, the firm has achieved numerous milestones that have put it on the path to its next phase of expansion.

Financial Fusions

The Sam Bankman-Fried-led firm has built its headquarters in the Bahamas and obtained licenses under new regulatory regimes both in the Bahamas and Gibraltar since its last investment round.

The company is also strategic in terms of product offers. It launched an NFT marketplace. It is becoming increasingly popular among major digital currency exchanges today.

Known for its Merger & Acquisition deals, the company bought Blockfolio for a then-record-breaking $150 million, and its US affiliate, FTX.US, also acquired LedgerX, a CFTC-regulated clearinghouse.

While the firm has not stated if it plans to make any acquisitions with the fresh financial infusion, it would not be surprising if it did so as part of its strategy to broaden its influence in the industry.

FTX is the third-largest trading platform in terms of volume, having increased its customer base by more than 60% since the last investment round. FTX Ventures, a $2 billion venture fund the exchange founded recently launched to promote worldwide blockchain, cryptocurrency, and Web3 adoption.

Christina Jones
Christina Jones
Christina Jones is the owner and CEO of Cryptoconstellation Before starting Crytpoconstellation, Christina spent ten years as an Editor in Chief at a well-known publishing house, Editorial Planeta SL, in Madrid.

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