The value of cryptocurrency firm FTX Trading increased from $900 million to $18 billion!

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FTX Trading on Tuesday said its valuation rose to $18 billion (about Rs 1,34,280 crore) following a $900 million (approximately Rs 6,710 crore) funding round. That included the SoftBank Group and was one of the biggest fundraisers for a cryptocurrency company.
The round saw participation from more than 60 investors, including venture capital firm Sequoia Capital, private equity giant Thoma Bravo, Daniel Loeb’s Third Point, the Paul Tudor Jones family and British hedge fund manager Alan Howard.

The new funding comes as investor sentiment towards cryptocurrencies has soured somewhat after initial enthusiasm earlier this year due to rising regulatory concerns globally.
Binance, another major cryptocurrency exchange, has faced scrutiny by regulators in the UK, Germany, Japan and Hong Kong. According to a media report, the United States is also investigating the exchange.

Strict scrutiny has had an effect on the price of bitcoin. On Tuesday, the cryptocurrency fell below $30,000 (about Rs 22 lakh) for the first time in a month. The price of bitcoin in India was Rs 23 lakh on 21st July at 1:30 PM IST.

FTX is founded and led by 29 year old crypto billionaire Sam Bankman-Fried. FTX itself is the owner and operator of the FTX.COM cryptocurrency exchange. The two-year-old company said it has over 1 million users and averages around $10 billion (about Rs 74,570 crore) in daily trading volume. This year the revenue has increased by more than ten times.

FTX, which also counts celebrity couple Tom Brady and Gisele Bundchen among its supporters, caters to a wide variety of traders, including retail investors, family offices and institutional traders. It plans to use the fund’s fresh infusions to expand its product offerings and other investments. Coinbase Ventures, the venture arm of recently listed cryptocurrency exchange Coinbase Global, also participated in the funding round.




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