FTX Trading lands $25 billion valuation after $450 million investment

abdelaziz Fathi

FTX, the cryptocurrency exchange founded by Sam Bankman-Fried, said on Thursday its valuation had risen to $25 billion after a $450 million funding round that included a clutch of heavyweights from traditional finance.

ftx

The round saw participation from more than 69 investors, including Ontario Teachers’ Pension Plan Board, Temasek and Tiger Global.

The latest funding comes as investor sentiment towards cryptocurrencies has somewhat soured after the first ever Bitcoin ETF debuted on the New York Stock Exchange. Bitcoin price also reached yet another all-time high on Wednesday.

FTX Trading, which launched in 2019, has raised in July $900 million in a Series B fundraise, which was the largest ever for a crypto exchange. Since then, the company says it has grown its user base by nearly 50 percent while its average trade volume increased 75 percent, now averaging $14 billion per day.

The company used the bulk of the funds for mergers and acquisitions. Specifically, the exchange’s US-affiliate, FTX US, acquired CFTC-regulated crypto derivatives exchange and clearinghouse, LedgerX.

FTX established its new headquarters in the Bahamas and secured licenses under new regulatory frameworks in the Bahamas and Gibraltar. The expansion effort also included the roll out of its own NFT marketplace, FTX NFTs. With revenue surging more than tenfold this year, these millstones place FTX.COM in a prime position to grow into one of the world’s leading crypto exchanges.

Sam Bankman-Fried, CEO of FTX, commented on the news, “We founded FTX two years ago with the idea of creating a better financial marketplace. Today we are focused on establishing FTX as a trustworthy and innovative exchange by regularly engaging with regulators around the world, and constantly seeking opportunities to enhance our offerings for digital asset investors.”

“For this round, we capitalized on those strides and were able to partner with investors that prioritize positioning FTX as the world’s most transparent and compliant cryptocurrency exchange,” he added.

The 30-year-old billionaire has been spending lavishly lately to raise the awareness of FTX brand worldwide. The exchange, which also counts celebrity couple Tom Brady and Gisele Bundchen among its backers, signed a multimillion-dollar sponsorship deal with the National Basketball Association’s Miami Heat.

With fresh capital in hand, FTX plans to utilize the new injection to expand into new jurisdictions, improve upon its current offerings, and further establish itself as a marketplace leader.

“The additional capital and group of investors will let us provide the experience our users deserve and address other adjacent market opportunities including equities, prediction markets, NFTs and videogame partnerships. We expect to make strategic investments designed to grow the business and expand our regulatory coverage.” said Ramnik Arora, Head of Product at FTX.

Read this next

Chainwire

Multipool Sells Out Fjord Foundry LBP

With the close of the LBP, Multipool launched their native token, $MUL, on Uniswap V3 today with a market cap of $13M.

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary: FED, ECB, Global Inflation, May 27 ,2024

Central banks walk a tightrope: Fed stays hawkish on inflation, ECB eyes rate cuts but waits on data. This could cause currency swings and impact global economic growth.

Metaverse Gaming NFT

Despite $1 billion lawsuit, Cristiano Ronaldo launches new Binance NFTs

Cristiano Ronaldo has unveiled his fourth non-fungible token (NFT) collection in collaboration with Binance. The new collection is set to debut on the Binance NFT Marketplace this week, featuring highlights from Ronaldo’s football career.

Market News, Tech and Fundamental, Technical Analysis

GBPJPY Technical Analysis Report 27 May, 2024

GBPJPY currency pair can be expected to rise further toward the next resistance level 202.00, which is the target price for the completion of the active impulse wave 3

Digital Assets

Celebrity X accounts hacked to promote meme tokens

Several celebrity and influencer X accounts on social media platforms have been hacked, with the attackers promoting various cryptocurrencies and meme tokens.

Digital Assets

Silk Road founder to walk free if Trump re-elected

Donald J. Trump has vowed to commute the life sentence of Silk Road founder Ross Ulbricht to time served if he is re-elected as president.

Industry News

UF AWARDS Global 2024: Nominations Closing Soon!

There is still time to nominate your brand at this year’s prestigious UF AWARDS Global 2024.

Digital Assets, Uncategorized

SSV.Network to reduce hardware requirements by up to 90%

With projections indicating a milestone of 50,000 validators within the next year, the platform’s scaling roadmap represents a crucial step toward achieving this vision.

Education

Understanding DeFi: new opportunities beyond traditional banking

Dive into the dynamic field of DeFi with our comprehensive article that explores the transformative power of DeFi beyond traditional banking. Discover the broader implications of DeFi in areas like lending, borrowing, and governance.

<