FTX token reacts strongly after exchange raises $900 million funding to reach $18B value – Crypto News Flash

FTX token reacts strongly after exchange raises $900 million funding to reach $18B value

John KumiBy No CommentsJohn Kiguru edited by John Kiguru
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  • FTX makes a 15 percent rebound soon after the exchange raised $900 million in a funding round.
  • The money is set to be used for mergers and acquisitions.

FTX, a San Francisco crypto exchange, recently raised $900 million in a funding round led by several investors including Coinbase Ventures, Paradigm, and Sequoia Capital. Over 60 investors took part in the Series B fundraiser to push the value of the company at $18 billion. 

Just as expected, its native token FTT has responded strongly with a 15 percent surge in the last 24 hours to take its price to $27. The price is still 57 percent down from its all-time high. Also, its fully diluted valuation is over $9 billion. 

The founder, Sam Bankman-Fried has hinted that the company aims to compete with the largest crypto exchanges, and so the money raised would be used for mergers and acquisitions. 

It was a lot of work. But it looks like it’s really going to pay off in terms of building a lot of relationships, especially outside of the ecosystem, that we didn’t have before.

The founder earlier hinted at their plans to acquire reputable financial institutions such as Goldman Sachs once the exchange dominates the space. However, he has backtracked his statement claiming Goldman Sachs is rather a large target, and so they will consider more realistic acquisitions.

FTX revenue jumps by tenfold

In April, FTX sealed a deal with the Miami Heat NBA franchise worth $135 million. As part of the deal, the deal will see the Miami Heat’s NBA stadium renamed FTX Arena. A month after, the exchange sealed another deal worth $210 million with the largest esports team TSM in addition to becoming the MLB’s official crypto sponsor. 

The exchange has recorded an incredible performance this year as its revenue surged tenfold. In addition, millions of users visit the exchange, taking its average daily trading volume to over $10 billion. The data are expected to be higher with the acquisitions in the pipeline. 

When you look at some of the companies that we would be interested to acquire—that we really think could help build out—our product base, our user base, those are much bigger ticket items so I think that that’s by far the most likely source of funds.

Its token, FTT, has been an appeal to investors with several additional benefits including the offering of a three percent discount on trading fees for those who hold at least $100 worth of the token. The exchange also offers staking services of which users stand a chance of enjoying several benefits including airdrops, NFTs, higher referral rates, etc. Currently, the exchange has outlined plans to expand to the US.

 

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This article is for informational purposes only and does not constitute investment advice. Read full disclaimer

John Kumi

John Kumi

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John is a seasoned cryptocurrency and blockchain writer and researcher, boasting an extensive track record of years immersed in the ever-evolving digital frontier. With a profound interest in the dynamic landscape of emerging startups, tokens, and the intricate interplay of demand and supply within the crypto realm, John brings a wealth of knowledge to the table. His academic background is marked by a Bachelor's degree in Geography and Economics, a unique blend that has equipped him with a multifaceted perspective. This diverse educational foundation allows John to dissect the geographical and economic factors influencing the cryptocurrency market, offering insights that go beyond the surface. John's dedication to the crypto and blockchain space is not merely professional but also personal, as he possesses a genuine passion for the technologies that underpin this revolutionary industry. With his astute research skills and commitment to staying at the forefront of industry trends, John is a trusted voice in the world of cryptocurrencies, helping readers navigate the complex and rapidly changing terrain of digital assets and blockchain innovation. John Kiguru is an accomplished editor with a strong affinity for all things blockchain and crypto. Leveraging his editorial expertise, he brings clarity and coherence to complex topics within the decentralized technology sphere. With a meticulous approach, John refines and enhances content, ensuring that each piece resonates with the audience. John earned his Bachelor's degree in Business, Management, Marketing, and Related Support Services from the University of Nairobi. His academic background enriches his ability to grasp and communicate intricate concepts within the blockchain and cryptocurrency space.
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