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• The funding values FTX at $32 billion, up from $25
billion in October 2021
• Some investors fear that the market may be on the cusp of
“crypto winter”
Crypto exchange FTX Trading Ltd on Monday said its
valuation jumped to $32 billion after raising $400 million in a funding round,
highlighting the continued appetite of investors for the sector is still
growing even as there is a sharp pullback in crypto prices.
The new valuation of the company is more than the market
cap of the Nasdaq exchange or Twitter.
The capital injection will help the Bahamas-based company
expand globally and obtain additional licenses in different markets.
“FTX will look to continue interacting with regulators to
facilitate access to digital assets in a safe and compliant manner,” FTX chief
Sam Bankman-Fried said in a statement on Monday.
“We look forward to working alongside our investors to
achieve our mission and continue our tremendous growth throughout 2022 and
beyond.”
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Earlier, Bankman-Fried has told CoinDesk that the crypto
exchange platform was planning acquisitions and partnerships to enter more
countries and grow its user base.
Two fundings
Last week, FTX US, the sister firm of FTX, which competes
with Coinbase Global Inc, raised $400 million in its first funding round,
valuing it at $8 billion.
Singaporean state investing firm Temasek, Paradigm, Ontario
Teachers’ Pension Plan Board, SoftBank, and Tiger Global were among others who
funded both the company.
FTX, which offers derivative products and spot trading,
rivals the world’s biggest digital currency exchange Binance.
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parallels’ between crypto and subprime mortgage crisis
The latest funding round brings the total amount raised to
$1.8 billion. It comes a little over three months after FTX raised $420
million, valuing the company $25 billion.
Crypto winter
The funding came at a time when some crypto investors fear
that the market may be on the cusp of a more severe downturn known as “crypto
winter.”
To date, Bitcoin, the world’s biggest digital currency in
terms of market cap, is down 46% from its November record of almost $69,000,
while other cryptocurrencies have slumped even further.
The last such occurrence of such bloodbath happened in late
2017 and early 2018 when Bitcoin plummeted around 80% from its then-record
high.
Picture Credit: Crypto News