FTX, one of the popular cryptocurrency exchanges, is in the process of raising anywhere between $400 million and $1 billion in a fresh funding round, according to a report by The Block.
Though the exchange did not confirm anything officially, the publication cited three anonymous sources, reporting that the crypto exchange is expecting a valuation of $20 billion. An earlier media report estimated FTX’s current valuation to be $3.5 billion.
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The sources of the publication revealed that the crypto exchange is expected to utilize the fresh funds to improve its relations with large financial services companies and expand its reach ‘beyond crypto-native market participants’.
If the exchange successfully snatches the capital infusion, it will become one of the top valued crypto companies.
A Highly Successful Crypto Exchange
FTX was launched in 2019 as a crypto derivatives exchange and soon gained popularity because of its unique product line. The exchange expanded its markets beyond crypto and launched services like fractional stock trading and a popular predictions market. Moreover, it offers spot crypto trading against multiple fiats.
Though spot trading on the exchange remains on the lower side because of the presence of other crypto giants, futures trading volume on FTX touched $100 billion last month.
The success of the exchange can be seen from its past financials as it generated $85 million in fee revenue in 2020. It is now expecting revenue of $400 million in 2021.
Furthermore, FTX is spending a ton on the marketing of its platform. Most recently, it bought the naming rights of the Miami Heat’s stadium for $135 million, which became the first deal of such kind for a crypto company.