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

  • 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.

 

About Author

John's a cryptocurrency and blockchain writer and researcher with years of experience. He has a lot of interest in emerging startups, tokens, and the invisible forces of demand and supply. He holds a Bachelor's degree in Geography and Economics. My Email: (kojokumijohn@gmail.com)

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