Crypto Trade FTX raises $ 900 million at a valuation of $ 18 billion and breaks off from Binance – bitcoinist.com
An exciting start to the week for one of the richest in the crypto industry, CEO Sam Bankman-Fried. Its FTX derivatives exchange announced $ 900 million in a Series B fundraiser. That sharpens his profile even more. And it’s worth a whopping $ 18 billion now, down from $ 1.2 billion a year ago. And what a year it was. Forbes gives us the digits:
FTX has an average daily trading volume of over $ 10 billion; It has increased sales tenfold this year, according to a company statement, and has increased 75-fold since closing its Series A funding round in mid-2020.
Among the more than 60 investors who participated this time, we find:
Paradigm, Sequoia Capital, Ribbit Capital, Third Point, Lightspeed Venture Partners, Coinbase Ventures, Softbank, Sino Global Capital, Multicoin, the Paul Tudor Jones family, VanEck, Circle and the hedge funds Izzy Englander and Alan Howard.
Not among investors: Binance.
Related reading | Why the CEO of Crypto Exchange FTX isn’t ruling out the purchase of Goldman Sachs and the CME Group
Why is Binance no longer involved in FTX?
The Chinese juggernaut was an early investor in FTX. In addition, Binance CEO Changpeng Zhao revealed on the Up Only podcast that he and Sam Bankman-Fried were in talks about opening a joint exchange before either of them made it big. So what happened Why did Binance abandon its stake in FTX? Did they fall out? Or is Binance’s recent troubles with every country under the sun to blame? Changpeng Zhao responds to Forbes:
“We have seen tremendous growth from them, we are very happy with them, but we have completely dropped out.” He declares the withdrawal as part of a “normal investment cycle” and says that it was concluded on good terms: “We are still friends, but we no longer have an equity relationship.”
What does the future hold for FTX? What about the past?
Our sister site NewsBTC informs us about Bankman-Fried ‘s original deal, Alameda Research:
Alameda Research made more money than God in an arbitrage trade. They found that there was a premium hidden in Bitcoin prices in Japan. They bought in the US, sold in Japan, and made history. And a fortune. After that, “the FTX derivatives exchange is Sam’s second venture and has developed into one of the most popular crypto exchanges since it was founded in 2019.”
For the future we have to consult the blockwho recently spoke to Bankman-Fried:
With the fresh capital, FTX wants to enter a business area that is common on Wall Street: white labeling software.
Bankman-Fried, a former Jane Street dealer, said the company has already been introduced to potential customers. “Whether it’s a neobank that wants to offer crypto trading or a payment gateway, everything we have is available through an API,” he told The Block.
BTC price chart on FTX | Source: BTC / USD on TradingView.com
What does all of this have to do with Tom Brady and Gisele Bündchen?
A lot when you consider that they both have shares in the company. The celebrity couple recently signed a contract Brand ambassador for FTX. Her timing was perfect as her stocks definitely went up with that $ 900 million fundraiser. As for the deal itself, Bitcoinist timely reported:
Brady and Bündchen will become FTX brand ambassadors as part of the new deal in exchange for an undisclosed amount of cryptocurrency and for a stake in FTX. In addition, Bündchen will act as a consultant for the company’s environmental and social initiatives. The step comes after the stock exchange, which has committed itself to being climate-neutral through CO2 offsets.
Related reading | “I’m a firm believer in crypto,” said Tom Brady in the last interview
Their deals with the sports world are one of the strategies that have raised FTX’s profile over the past year. 1.- You recently acquired the naming rights to the Miami Heat arena. 2.- FTX is the cryptocurrency exchange partner of the Major Leagues Baseball League. 3.- They paid $ 210 million to change the TSM esports team name to TSM FTX. So they made big strides before they got all that new money.
Featured image by Giorgio Trovato on Unsplash – Charts from TradingView