FTX crypto exchange valued at $ 18 billion after biggest funding round in crypto history

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The Sam Bankman-Friedscrypto FTX derivatives exchange completed a $ 900 million Series B fundraiser that values ​​the company at $ 18 billion, billing itself as the largest private equity fundraiser in the world. history of the sector, almost doubling the previous record.

Investors in the round included SoftBank Group Corp., the Paul Tudor Jones family, Alan Howard, Coinbase Ventures and Sequoia Capital. Paradigm, Thoma Bravo, Ribbit Capital, Insight Partners, Third Point, Lightspeed Venture Partners, Altimeter, BOND, NEA, Willoughby Capital, 40North, Senator Investment Group, Sino Global Capital, Multicoin, Izzy Englander, VanEck, Hudson River Trading and Circle as well participated in the round table in which more than 60 investors participated.

FTX, which also counts celebrity couple Tom Brady and Gisele Bundchen among its funders, caters to a wide variety of traders, including retail investors, family offices and institutional traders. It plans to use the new injection of funds to expand its product offering and for other investments.

FTX, launched in May 2019, has differentiated itself from industry giants like Binance and Coinbase by offering even inexperienced traders advanced features and sophisticated investment products including options, futures, trading products. volatility and leveraged tokens.

FTX has invested heavily in its marketing to spread its brand around the world. In March, FTX secured a 19-year rights contract to the NBA Miami Heat’s national arena for $ 135 million the first time a cryptocurrency exchange sponsored a professional sports site in the States. United Last month, the company entered into multi-year brand partnerships with sports organization TSM and Major League Baseball (MLB) and named National Football League quarterback Tom Brady as its ambassador. multiplied by more than ten this year.

The new funding round comes at a time when bitcoin has fallen below $ 30,000. In addition, the industry continues to witness growing regulatory concerns globally. Binance, another major cryptocurrency exchange, has come under intense scrutiny by regulators in the UK, Germany, Japan and Hong Kong. The United States is also investigating the exchange. However, this barely stopped venture capital is rushing to support crypto firms.

The sector is indeed growing stronger. In April, Coinbase listed its shares on the Nasdaq, becoming the first major company in the industry to do so. Following the lead, digital infrastructure provider Circle and the yet-to-be-launched cryptocurrency exchange Bullish recently announced plans to enter public markets as well.

Matt Huang, who co-founded Paradigm with former Coinbase staffer Fred Ehrsam, said Sam Bankman-Fried is one of those special founders whose vision is both incredibly ambitious and uniquely suited to the future of cryptography. The teams’ execution speaks for itself, with FTX becoming a leading global exchange in two years.

Copyright 2021 FinTech Global

Investors

The following investors have been identified in this article.

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