- Crypto exchange FTX raises $400 million with several returning investors.
- The investment will help sustain its growth despite lower trading volumes in 2022.
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The news: The Bahamas-based crypto exchange raised a $400 million Series C at a $32 billion valuation after charting staggering growth in 2021.
More on FTX: Though it was only founded in 2019, FTX quickly has established itself as the third-largest global crypto exchange—and investors keep returning to it with fresh capital.
FTX was the fastest-growing crypto exchange last year: Its trading volume spiked by 600%, outstripping its closest competitor Huobi by over 200%.
Its trading volume now only trails first- and second-place Binance and Coinbase.
FTX’s user base has also grown by 60% since October, while average trading volume ticked up 40%.
Investors rewarded its impressive growth with several mega-rounds: It netted some $1.8 billion across three raises over the last six months.
FTX has added $7 billion to its value since its October raise of $420 million. Its US subsidiary also raised $400 million only last week.
What’s next for FTX? Its deep pockets will help finance further growth and a large-scale marketing push to offset the global slowdown in crypto-trading volume.
The H2 2021 was marked by slowing crypto-trading volume after reaching a Q2 peak: In Q3, global trading volume fell 37%.
We expect this to carry over into 2022, as retail investors’ appetites lessen for short-term trading and as signs of fatigue grow after the frenzy of 2021.
Despite these limiting factors, FTX’s war chest means it’s well-resourced to keep growing, albeit not at the same breakneck speed.
The crypto exchange has outlined a core strategy of global expansion and a worldwide rollout of its full-range of services—such as in Southeast Asian markets—which will help stimulate fresh user growth.
Funding also will help FTX sustain its large-scale marketing campaigns—which included featuring American football star Tom Brady—and further build its brand recognition.
FTX might take advantage of the slightly harsher market conditions by accquiring smaller players and scooping up their customer bases and technology: This week, it also announced its purchase of the Japanese exchange Liquid.
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