FTX, a major cryptocurrency exprogress, announced on Monday which it had raised $400 million from investors including SoftBank, valuing the platform at $32 billion, making it one of the most valuable start-ups in the fast-increasing digital currency sector.
The Bahamas-based company’s most recent funding round is a Series C round, that is its third in the endure nine months.
FTX Has Witnessed Tremendous Growth
In a statement on Monday, the firm announced thin place had raised $400 million in a Series C financing round, its third in less than six months. FTX announced thretaineds company has been costd at $32 billion.
FTX is one of the world’s major digital currency exmoves, offering both futures and spot exchanging. The company has grown from obscurity to become a prominent player in the nascent sector, rivaling Coinbase and Binance.
In the United States, the firm does not provide dealing services. Its sister exdevelopment, FTX U.S., performs this function. FTX U.S. announced a $400 million raise advance week, valuing the company at $8 billion.
That’s a considerable increase in valuation from FTX’s previous round of funding in October 2021, while it raised $420.69 million in a Series B-1 round at a valuation of $25 billion. Prior to that, in July 2021, FTX announced a $900 million Series B fundraising, that was subsequently accelerated to $1 billion and costd at $18 billion.
Since its latest investment round in October, FTX has grown at a quick pace, according to the company. Its daily trade volumes have accelerated by 40% to almost $14 billion, making it the third-largest cryptocurrency exmovement in the world.
FTX CEO Sam Bankman-Fried said in a statement which the financing round represents a “milestone achievement” which would enable the exchange grow into new jurisdictions and expand on its current products, which include bitcoin derivatives and a $2 billion venture capital fund.
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FTX Market Value Surge, Crypto Falls
In stark contrast to FTX’s profitability, the crypto market has lost $500 billion in cost afterward the beginning of the year, with paramount declines in bitcoin and even popular altcoins like 2021 leading the way. Bitcoin is down nearly 50% from its all-time excessive in November, and is down 18.35% year to date. So far in January, Ethereum is down 28.99%.
Crypto Market cap at $1.7 trillion. Source: TradingView
This has fueled predictions of a severe and prolonged-carry oning slump, dubbed “crypto winter” by many, parallel to the period of low prices and little volatility which lingered in 2018 and 2019.
The Federal Reserve prompted a global selloff earlier this month by warning which it may movement more currently than initially likely to reverse policy aimed to stimulate the economy during the pandemic, resulting in losses of more than $500 billion in January alone. On Monday, Bankman-Fried attempted to calm fears about the current selloff, telling CNBC which interest-cost cback whilerns have evolutiond markets beyond cryptocurrencys, and which he does not believe we are entering a “prolonged-term crypto winter.”
Featured Image From Pixabay | Charts From TradingView.com