California-based FTX Trading Ltd., owner and operator of FTX – a cryptocurrency derivatives exchange company built by traders, for traders, announced that it has raised a whopping $900M (approx €765M) in its Series B round of funding.
With this massive funding round, the company is now valued at $18B. FTX claims the current round represents one of the largest raises for a crypto company.
Investors in this round
The Series B round saw participation from over 60 investors, including Paradigm, Sequoia Capital, Thoma Bravo, SoftBank, Ribbit Capital, Insight Partners, Third Point, Lightspeed Venture Partners, Altimeter, BOND, NEA, Coinbase Ventures, Willoughby Capital, 40North, Senator Investment Group, Sino Global Capital, Multicoin, the Paul Tudor Jones family, Izzy Englander, Alan Howard, VanEck, Hudson River Trading, and Circle.
“As crypto becomes more ubiquitous, FTX has the opportunity to build a next-generation financial services brand, spanning exchange, payments, and many other categories to come. The Ribbit team is excited to partner with them on their journey to grow the digital currency ecosystem and change finance,” says Nick Shalek, General Partner at Ribbit Capital.
Capital utilisation
The raised capital will help FTX expand its services globally and accelerate the company’s growth by further expanding its product offerings and user base. Besides, the company is also planning to further expand the network of partnerships it has for its FTX Pay, FTX Liquidity program & FTX NFT business lines.
Speaking on the development, Sam Bankman-Fried, CEO of FTX, says, “I’m incredibly humbled by the support we’ve gotten. It’s our first large fundraise, but through it we’ve formed a hugely valuable set of partners. I’m excited to work with them to make FTX the best company it can be. We started out as a new derivatives exchange two years ago, and this round will help us continue to build out a bigger and broader vision for what FTX could become.”
FTX’s mission
Founded in 2018 by Sam Bankman-Fried and Gary Wang, FTX is a cryptocurrency exchange company that offers products including derivatives, options and volatility products, tokenised stocks, prediction markets, leveraged tokens and an OTC desk.
The company’s mission is to build the best derivatives exchange and to help move this space toward becoming institutional.
Since its launch in May 2019, FTX has witnessed tremendous growth. The company’s revenues have increased over tenfold this year and 75x since its Series A funding round closed in mid-2020.
Currently, the company has over 1 million users and are averaging over $10B of the daily trading volume. The platform serves the entire chain of cryptocurrency trading participants from retail and crypto-native investors to sophisticated day traders, family offices, and experienced institutional traders.
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