Infotech

FTX, the rising crypto platform, raises record funds



Posted on Jul 21, 2021 at 7:17 PMUpdated on Jul 21, 2021, 8:22 PM

The FTX platform has just completed the largest fundraiser in the history of the cryptocurrency sector. Particularly specializing in digital asset trading, FTX announced on Tuesday that it had raised nearly $ 900 million, which propels its valuation to more than $ 18 billion. FTX brought together for this round of Series B from 60 investors including Softbank, Sequoia or Insight Partners, according to a press release.

“The funds will allow FTX to further expand its product offerings and user base. The company will leverage the funds to further enhance its offerings and make strategic investments designed to grow the business, ”the company said in its statement.

Sam Bankman-Fried, its 29-year-old CEO, said according to Bloomberg that “the acquisitions would probably be transactions in the private market. […] with potential targets between 5 million and 1 billion dollars ”. What to put into perspective the overwhelming ambitions displayed by the young billionaire who said recently in an interview with the “Financial Times”, consider being able to buy the giants of traditional finance like Goldman Sachs or the Chicago Stock Exchange (CME) “if FTX became the biggest crypto exchange in the world ”.

Platform launched in 2019

The CEO of FTX had recently indicated that his company did not currently intend to go public, but that it was a possible option. A quotation milestone already crossed a few months ago by Coinbase, another digital asset platform, which is now valued at nearly $ 46 billion.

Launched in 2019, FTX has succeeded in establishing itself as one of the major cryptocurrency exchanges, by offering a reliable service on the fluidity of transactions and a plethora of financial products. Recently, for example, the platform announced the launch of tokenized shares, including some from the big names on the Nasdaq such as Facebook, Netflix, Tesla or Google.

In just two years, FTX claims to have gathered nearly 1 million daily users for an average trading volume close to $ 10 billion. Performance that propelled it as the fourth largest exchange for the sale of bitcoin and the second in the world for derivatives, according to Coingecko.

To attract the general public and investors in the American market, Sam Bankman-Fried recently carried out large-scale communications operations. The second largest donor of the presidential campaign of Joe Biden according to the Wall Street Journal, has recruited Tom Brady, legend of American football, as ambassador of his platform. A coup preceded by the auctions won to have the hall which hosts the matches of the Miami Heat, one of the most famous American basketball franchises in the world, to be renamed “FTX Arena”.

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