The Hong Kong-based FTX exchange appears to be the latest unicorn cryptocurrency company with a valuation of $ 1 billion.
Image source: Pixabay
- On the line in March, the daily trading volume broke through 100 million, and the FTX exchange that turned out to be so hot is so hot?
The next crypto unicorn?
The Liquid Value blockchain fund under Sino Global Capital announced that it is investing in the B round of financing of FTX, and the amount of investment has not been disclosed.
The news comes after FTX confirmed last week that it will sell equity in tokens.
FTX officially opened in 2019, but has maintained rapid growth since then. This is partly due to increased demand for cryptocurrency derivatives by retail and institutional investors. However, FTX also received support from Binance, which launched FTX's platform coin FTT last year.
Recently, in terms of adjusted trading volume, the exchange has become the fifth largest transaction, surpassing competitors such as Bybit, Derbit and Bitflyer. The exchange's token, FTT, started in January when the exchange launched derivative tokens that allowed holders to place bets on the outcome of the upcoming US presidential election.
"Radical" expansion plans
On February 26, FTX confirmed that tokens representing the company's equity were being sold. Each FTX equity token is worth $ 2 and there are 500 million for sale. The minimum investment is $ 250,000, which also keeps many smaller investors out of the door.
In its latest announcement, Liquid Capital joins investors who believe FTX, a $ 1 billion valuation, is reasonable.
A press release on the Sino Global Capital website confirms that this investment will fund FTX's "positive" growth plan for this year, including new products, mobile apps and more leveraged tokens.
The fund's managing partner, Matthew Graham, only introduced the liquidity value of joining this Series B round in a cryptocurrency briefing, saying:
"In the past year or so, we have known Sam (FTX CEO) and his All-Star team very well. We support their professionalism and highly valued execution capabilities, so frankly, we are excited about this investment. In addition , FTX's expansion plan has largely given priority to the Chinese market. It is a natural thing to become its strategic investor. "
It is unclear how much Liquid Capital will invest. However, if FTX can sell all of its tokens and achieve a $ 1 billion valuation, it will join the queue of other cryptocurrency exchange unicorn companies, including Coinbase, Binance and Kraken.
Dark horse in the exchange
Although it was established in 2019, FTX is now a dark horse of the exchange in 2020. According to data from Skew Markets, the total daily trading volume of Ethereum futures of the Hong Kong-based cryptocurrency derivatives exchange jumped to a record high of $ 245 million on February 28, an increase from $ 162 million on February 25 51%. The previous record of $ 189 million was set on February 20.
In addition to the gorgeous data of the exchange itself, FTX CEO Sam Bankman Fried also has amazing market operations. On February 27, Bitfinex leaderboard data showed that the account certified as FTX CEO Sam Bankman Fried (@SBF_Alameda) had a floating loss of more than $ 13 million. After investigation, in addition to Bitfinex, Sam is also conducting hedging operations on the BitMEX trading platform. According to public data, Sam (including the market maker Alameda founded by him) has made more than 7,000 Bitcoins on BitMEX.
But for such a huge amount of assets, Sam was also asked if he had misappropriated the assets of exchange users for operations, but Sam responded that "all are personal assets, which is also a hedge against short-selling operations elsewhere. Bitfinex has relative to other markets. Great discount. "
According to a financing recommendation document sent to institutional investors a month ago, the exchange expects to achieve a net profit of US $ 40 million in 2020, and it is expected to achieve a performance increase of three times the net profit each year in the next three years. In contrast, according to previous reports, Binance's 2019 net profit was about $ 577 million.
However, Sam Bankman-Fried, founder and CEO of FTX, said that it expects to achieve a net profit of $ 40 million for the full year of 2020. The trading volume of the FTX exchange has doubled in the past few weeks, showing the possibility of higher profits.