FTX, a popular crypto trading exchange for spot trading as well as leverage trading is reportedly raising $1 billion in a new funding round that could take its valuation to $20 billion. A source familiar with the matter told The Block that the exchange could raise anywhere from $400 million to $1 billion without offering much detail about the lead investors.
The sources also revealed that the new stream of the fund would be dedicated to expanding the exchange portfolio to include entities beyond crypto assets and also build a relationship with large financial institutions.
FTX has become quite popular for crypto futures trading on its platform and facilitated nearly $100 billion worth of Futures trade just over the past month. Unlike many crypto exchanges which have often malfunctioned during peak trading hours, for example, just the day before yesterday when the whole crypto market experienced a blood bath and people were rushing to either sell their holdings or buy the dip, the major exchanges including Coinbase and Binance were inaccessible for the majority of the time. This led to traders lose significant profits.
FTX Joins the Growing List of Crypto Platfroms With Multi-Billion Valuation
2021 has proven to be the year of Bitcoin, altcoins as well as crypto companies as they gained not just wider recognization and adoption but also raised some of the highest amounts raised by crypto companies ever. Chainalysis raised $100 million to see its valuation go to $1 billion while the likes of blockchain.com and Blockfi raised over $300 million each as their valuation grew into multi-billion as well. The high capital raise by these crypto companies are being associated with growing demand for such crypto service in the mainstream.
Coinbase Inc. the New-York based crypto exchange also made its public debut last month with an $80 billion valuation making it one of the biggest companies to make its public debut.