FTX crypto exchange aiming to raise $400 million in fund raising round

FTX, a crypto derivatives exchange, is raising a funding round with a private valuation of just over $20 billion, and with the aim to garner funds between $400 million to $1 billion.

Reportedly, funds raised with this activity will be used by the exchange to expand its offerings beyond cryptocurrencies in hopes of catching up with competitors that have already started venturing into alternative assets.

It can be recalled that major rival Binance has recently started offering tradable stock tokens on the exchange, giving its users the ability to trade tokenized shares of companies such as Tesla, MicroStrategy, and Microsoft, among many others.

FTX to cash out as crypto mania cools off

For the past month alone, FTX facilitated approximately $100 billion transaction volumes, making it one of the largest cryptocurrency futures trading platforms. Per CoinMarketCap, it is now the fifth-largest derivatives crypto exchange in the world.

Despite a massive slump last week that is persisting today, 2021, without a doubt, is one of the best years for the crypto industry and FTX is looking forward to cashing out big time, projecting its revenue this year to more than $400 million which is significantly higher than the $85 million revenue in 2020.

Exchanges having a good year

As profitable as the current year is for FTX, it is not the only exchange that is having a prolific year as many crypto firms rushed to complete massive capital fundraisers, taking advantage of money poured into the expanding industry by institutional and venture-capital investors. Paxos had its $300 million funding round while BlockFi managed to raise $350 million.

But it is uncertain if the crypto industry will sustain its success until the latter half of 2021, with bitcoin, ethereum and other major cryptocurrencies are down more than 50% from their respective highs, with exchanges such as FTX feeling the hardest of hits from the massive price corrections.

Image courtesy of Cointelegraph News/YouTube

Source: https://bitcoinerx.com/blockchain/ftx-crypto-exchange-aiming-to-raise-400-million-in-fund-raising-round/