FTX looks to mop up $1 billion as investment with $20 billion valuation

Karthik Subramanian

FTX, one of the fastest growing crypto exchanges in the world, is reported to be raising $1 billion in investment at a valuation of $20 billion.

What exchange traded FX will look like?

The reports do not say which are the companies that are involved in the latest round of investment and also do not mention when this investment would be done.

We had already reported on how FTX was aggressively looking to expand its reach in different parts of the world and also had reported that it had appointed its first CEO for the US as a means of pushing its growth in the US.

The exchange is looking to raise anywhere between $400 million and $1 billion in the latest investment round and considering the interest around crypto and the surge in prices and trading volume, it is believed that this should be easy to achieve with large investor interest expected.

The company had made around $85 million in fee revenue in 2020 and it is expected that this would go up to $400 million this year due to the huge surge in the number of users over the last few months.

Its CEO is Sam Bankman-Fried and the exchange was started in 2019 and within a couple of years it has managed to grow very quickly due to its innovative products and due to its diversification into specialised instruments in the derivatives space, many of which are not offered in other crypto exchanges.

The company is expected to use the incoming investments to improve its relationships with major financial firms around the world, an important aspect of growing the crypto business as these relationships ultimately decide what kind of services and help they would get in times of need.

With the crypto market growing day by day, despite the falling prices over the last couple of weeks, and with more institutions and banks also beginning to show interest in this domain, it may be a good time to raise funds. It should also be noted that it was only this year that a major US-based crypto exchange, Coinbase, has also got itself listed on the NASDAQ at a valuation of over $80 billion.

So, room for growth is available for FTX despite its seemingly high valuation of $20 billion. It remains to be seen which firms would be investing in the company in this latest round. It would also be interesting to see how FTX would be diversifying the funds as it tries to hedge its bets in the crypto space.

 

Read this next

blockdag

BlockDAG’s Impressive 30,000x ROI Potential and Moon-Based Keynote Captivate Solana And Bitcoin Cash Crypto Investors

Discover BlockDAG’s impressive moon keynote launch and its promise of a 30,000x ROI that is drawing investors from Solana and Bitcoin Cash.

Market News

This is it, the USD Strength has Come to an End

In the aftermath of Israel’s retaliatory strikes in Iran, the currency markets have entered a phase of heightened volatility, reflecting the intricate interplay between geopolitical tensions and economic fundamentals.

blockdag

BlockDAG Leads DeFi Innovation with $19M Presale, Overshadowing Cardano and Binance Coin With 30,000x ROI and DAG Structure

Learn about BlockDAG’s growth in its presale, surpassing $19M, and its impact on the DeFi landscape, overshadowing movements in Cardano and Binance Coin (BNB).

blockdag

BlockDAG Offering a Fresh Take on Meme Coin Development Amid Solana’s Challenges and Floki Inu’s Price Fluctuations With 30,000x ROI

Dive into how BlockDAG’s innovative presale, low-code platforms, and potential 30,000x ROI, outperform Solana’s technical hurdles and Floki Inu’s market predictions.

blockdag

BlockDAG Excels With $2.2M In Miner Sales And Moonshot Teaser, Overshadowing Litecoin’s Rally And Dogwifhat’s Market Highs

Explore how BlockDAG’s $2 million Miner Sales & Moonshot Teaser eclipse the Litecoin price recovery and the Dogwifhat all-time high.

blockdag

BlockDAG Leads Top 6 Cryptocurrencies to Buy in 2024 with a Potential Price Surge to $10 Leaving Cosmos, BNB, and Ethereum Behind

Discover the top six cryptocurrencies in 2024, including BDAG’s remarkable growth potential, BNB’s durability, Cosmos’ connectivity, and ETH’s eco-friendly advances.

Retail FX

Weekly Roundup: Prop firm arbitrarily accounts, Interactive Brokers’ CFDs in Japan

FX, Fintech and cryptocurrency markets have been bustling with activity over the past week, as is often the case. Keep yourself informed and ahead of the curve with a curated selection of crucial stories and developments that are most relevant to those engaged in the markets.

blockdag

BlockDAG Redefines Crypto Mining as Presale Tops $18.5M, Outshining Ethereum ETF & Dogecoin Dynamics

The recent approval of the first Ethereum ETF in Hong Kong underscores a significant advancement in the cryptocurrency’s mainstream acceptance. While Ethereum continues to attract institutional attention, the Dogecoin price prediction suggests a possible resurgence, despite its current undervaluation from past highs.

Digital Assets

Bitcoin halving is done: ViaBTC mines historic block 840K

The Bitcoin network has confirmed its fourth-ever halving block, mined by the cryptocurrency pool ViaBTC, according to data from Blockchain.com. This significant event in the Bitcoin ecosystem reduced the mining reward by half, a deflationary measure occurring approximately every four years to control the issuance of new bitcoins and curb inflation.

<