FTX, the second most popular cryptocurrency exchange after Binance, has announced a new valuation of $25 billion after raising $420,690,000 from 69 investors, including the Ontario Teachers Pension Plan and asset management behemoths BlackRock and Tiger Global.
Only three months ago, FTX raised $900 million in a Series B round led by Sequoia Capital, Paradigm, and Coinbase Ventures.
The crypto exchange has grown by leaps and bounds since the July raise and a valuation of $18 billion.
According to reports, the crypto exchange’s user base has increased by 48 percent, and its average trade volume has increased by 75 percent. This month, it handled around $13 billion in daily trading on average.
The new funds will be used to address “adjacent market opportunities such as equities, prediction markets, NFTs, and videogame partnerships,” according to Ramnik Arora, FTX’s head of product. “We anticipate making strategic investments to grow the business and broaden our regulatory coverage.”
FTX in the news recently
FTX moved from Hong Kong to the more Bitcoin-friendly Bahamas in September.
“The Bahamas is one of the few places to set up a comprehensive framework for crypto,” FTX founder and CEO Sam Bankman Fried said on Twitter, adding that the country “has emerged from COVID lively, safe, and without quarantine.”
1) We’re really excited to be setting up @FTX_Official’s headquarters in The Bahamas!a) The Bahamas is one of the few places to set up a comprehensive framework for crypto; FTX is registeredb) The Bahamas has emerged from COVID lively, safe, and without quarantine— SBF (@SBF_FTX) September 24, 2021
Earlier this month, it was revealed that FTX was planning to establish a Political Action Committee, or PAC. A PAC pools its members’ contributions to aid in lobbying efforts and can then donate up to $5,000 to any political candidate.
Despite the reports, FTX denied establishing a PAC.