FTX, a cryptocurrency derivatives exchange headquartered in Antigua, completed a record $900 million financing that valuates the company at $18 billion.
Due to the increase in the company’s net worth, it is expected that its billionaire founder and CEO, Sam Bankman-Fried, will increase his net worth by almost $8 billion.
This is a significant milestone for FTX, which was valued at $1.2 billion less than a year ago.
A Substantial List of Investors
With investors including Paradigm, Sequoia Capital, Ribbit Capital, Third Point, Lightspeed Venture Partners, Coinbase Ventures, Softbank, Sino Global Capital, Multicoin, the Paul Tudor Jones family, VanEck, Circle, and hedge funders Izzy Englander and Alan Howard, 60 investors participated in the fundraise.
FTX’s team bypassed investment bankers and completed the financing with Paradigm, Ribbit, and BTIG.
FTX is unique since it was established months after industry heavyweights like Binance and Coinbase to accommodate both beginners and experienced traders. FTX, the world’s second-largest futures exchange, is a clearinghouse for over $10 billion in daily trading activity. It saw $120 million in new income in 2019 and $75 billion since the firm’s Series A financing, completed in early 2020, according to a company statement.
The business has recently spent considerable sums to promote its brand to the rest of the globe. FTX has poured profits from crypto’s most recent bull run into marketing itself to people who are interested in cryptocurrencies, from multimillion-dollar sponsorship agreements with the NBA’s Miami Heat to a partnership with Major League Baseball.
Bankman-Fried said that the firm intends to utilize the majority of the money for merger and acquisitions deals, positioning the company to further develop into one of the world’s top crypto exchanges.
What is FTX?
The cryptocurrency futures market FTX started trading on May 8, 2019. Binance made a long-term investment in the FTX Token in December 2019 and bought shares in the business. According to Binance, FTX is projected to generate half a billion dollars everyday from its many goods.
FTX has purchased Blockfolio, a platform for institutional investors to manage blockchain funds, starting in August 2020. With more than 60 unique contracts, 60% of them are of the short-term kind, while the remaining 40% are long-term. Every contract contains a cryptocurrency or a cryptocurrency index as a reference point.