FTX Exchange Now Valued at $25 Billion Following Successful $420 Million Fundraiser
FTX cryptocurrency exchange has announced that it has successfully secured $420 million in funding through its series B-1 round from 69 investors, increasing the firm’s valuation to $25 billion, according to a press release on October 21, 2021.
FTX Raises Fresh $420 Million
Barely three months after completing a series B fundraiser that generated $1 billion from investors, Sam Bankman-Fried’s FTX cryptocurrency exchange has concluded a fresh $421 million series B-1 fundraise.
Per a press release by the Bahamas-based company, the funds will enable it to expand its operations to more jurisdictions, boost its product offerings and further solidify its status as a major player in the crypto space.
With a daily trading volume of $14 billion and a 48 percent increase in user base since its last funding round in July 2021, FTX says its latest funding success is a testament to its continued growth.
Breaking Regulatory Barriers
Commenting on the exchange’s latest milestone, Sam Bankman-Fried, the 29-year-old CEO of FTX, made it clear that the firm’s focus going forward is to further establish itself as a trustworthy entity by engaging more with regulators around the globe.
In his words:
“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 product offerings for digital asset investors.”
At a time when financial watchdogs across the world are bent on making life harder for crypto market participants, Bankman-Fried has hinted that FTX’s latest funding round focused on investors that have what it takes to boost its regulatory standing and compliance efforts across various jurisdictions.
“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 crypto exchange.”
The investors that participated in the series B-1 fundraiser include Teachers Innovation Platform (TIP), Sequoia Capital, ICONIQ. IVP, and Lightspeed, amongst others.
In addition to striving to become more regulatory compliant, Ramnik Arora, Head of Product at FTX has hinted that the company plans to use the raised capital to improve user experience and “address other adjacent market opportunities including NFTs and videogame partnerships.”
In related news, BTCManager reported on October 12, 2021, that the U.S. arm of FTX has launched a non-fungible token (NFT) marketplace for Solana-based digital collectibles.
At press time the price of FTX token is hovering around $63.98, with a market cap of $7.70 billion, as seen on CoinMarketCap.