FTX, a leading cryptocurrency exchange, has a valuation of $18 billion after its latest funding round. Participants like Sequoia Capital, SoftBank Group Corp, and Third Point put in $900 million. The mega-deal indicates consistent enthusiasm amongst investors for cryptocurrencies. It follows earlier crashes and market volatility.
FTX is now one of the crypto companies with the highest global valuations. The deal helps it go mainstream, gaining more acceptance across segments. It does not allow trading by American citizens in its core marketplace. It is a move to avoid any issues with regulators in the U.S.
The company has its main office in Hong Kong, although FTX Trading Ltd olmyptrade, the parent entity, has a presence in Antigua and Barbados. Other participants in the funding round include Alan Howard and Israel Englander, billionaire hedge fund bosses, and Paul Tudor Jones, who belongs to another billionaire family. ThomaBravo, the leading private equity entity, also joined the round.
Chief executive and founder of FTX, Sam Bankman-Fried, hails from California, having worked at Jane Street Capital LLC earlier. FTX has seen rapid growth ever since operations began in 2019. The founder is already a billionaire in his own right today.
The core activity is operating the crypto-derivative marketplace. It includes riskier instruments that enable traders to put specific bets on the fall/rise of these currencies. FTX takes care of $10 billion+ of trading on an average day. crypto binary option trading .
FTX is also gunning for sports-based sponsorships in recent years. The company green-lit a $135 million deal over 19 years for purchasing the naming rights to the Miami Heat’s home turf. This stadium is now the FTX Arena. NFL icon Tom Brady is an ambassador for the company and has taken an equity stake in it with his wife and supermodel, Gisele Bundchen. The sports deals will help promote FTX.US, a unique crypto exchange. It caters to American clients while adhering to all U.S. regulations.
Bankman-Fried states that the company will deploy its funds for expansion in regulated regions. It may include acquisitions of entities with financial licenses in several nations. FTX will also develop a new payments-based business with these funds. FTX Pay is the latest launch, enabling both conventional and crypto-currency payments for merchants. Other participants in the funding round include Coinbase Ventures, Circle, Insight Partners, Paradigm, Multicoin, Ribbit Capital, Lightspeed Venture Partners, Hudson River Trading, VanEck, and more.