FTX, a fast-growing crypto exchange that operates both in the US and around the world, is expected to raise $1 billion in new funding at a valuation of $32 billion – the same as its previous round. FTX.us predicts that it will become a market-leading US cryptocurrency exchange over the next two years.
FTX founder Sam Bankman-Fried has emerged as a vocal leader for the entire crypto industry. He has also been described as the Crypto Fed – or lender of last resort having backstopped several firms during the early days of the most recent crypto crisis.
As reported by CNBC, the capital infusion will create a war chest to pursue more acquisitions during a time of depressed valuations. The report notes that FTX’s top line revenue has “soured” in the past two years and net income came in at $388 million in 2021, far higher than $89 million in 2020.
FTX not only has emerged as a top crypto trading platform pursuing all aspects of cryptocurrencies but it is anticipated to move further into more traditional brokerage offerings as it provides a one-stop shop for investors. At one point it was rumored that FTX would purchase Robinhood – a competitor whose valuation has tanked – but this did not pan out. You can expect FTX to pursue a global strategy as financial services become more borderless, boosted by technology.