The crypto exchange FTX has recently touched a $25 billion valuation after it raised $420 million in a Series B round. This fundraising comes after the $900 million funding round that they conducted at the end of July. Many investors took part in the latest Series B round, and to be specific; the number was 69. The latest funding round also shows that FTX is doing pretty well as an exchange, and we can expect it to compete with Coinbase in the future.
The funding round
The latest funding round had many notable investors participating in the same. This included Temasek, Sequoia Capital, Sea Capital, IVP, ICONIQ Growth, Tiger Global, Ribbit Capital, Teachers’ Innovation Platform, and Lightspeed Venture Partners. Among these investors, Temasek was one of few ones that also participated in the July round, where the company raised $900 million. FTX said that in the July round, Temasek was the one that helped them to raise nearly $1 billion.
FTX is currently evaluated at $25 billion, and when I say it might be a big competitor for Coinbase, I mean it. This is because the company was founded just 2 years back and they have grown substantially in a very short period of time. The CEO of the exchange said that their goal with FTX was to create a better financial marketplace than what existed back at the time. And now they are super active while engaging with regulators all across the world to make sure they are on the right side of the law. At the same time, they are constantly working to improve their offerings.
In the last 3-4 months the userbase of FTX grew by nearly 50% as reported by the exchange. At the same time, their platform is averaging at $14 billion in trading volume per day. This shows that the platform is growing at a fast pace. They have also recently expanded to the Bahamas and have adopted their laws. Coming to the latest funding round, FTX will explore new spaces in the crypto markets like NFTs, videogame partnerships, prediction markets, and more.
What are your thoughts on the fast-paced growth of FTX exchange as it raises another $420 million? And do you think it will be able to overtake Coinbase in the future? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.