Hi HODLers,
Following the introduction of full KYC by Binance I have looked other CEXs and I have realized FTX was probably one of the top options to replace Binance.
Therefore I created my account a few months back and I have liked it so far. Lots of different cryptocurrencies options, some financial producs (leveraged tokens, stocks, leverage...) and an UI that I actually like.
If you are thinking to join FTX, please consider using my referral code so we both take some fees out of Sam Bankman-Fried's bank account :D. ref link
Today we learn that FTX raised $400mn in a Series C making the company worth $32 billion! Not bad right?
VCs are going to be VCs... FTX US business announced its own $400 million Series A round on January 26, which valued the U.S. arm at $8 billion. So it did a X4 in 2 weeks between the Series A and Series C :D
As all the investors in Series A participated in Series C, it clearly looks like a way to artificially inflate the MarketCap of the FTX exchange. I wouldn't trust this MktCap to be a fair representation of the actual value of the company.
What will this money be used for?
CEO Sam Bankman-Fried told Bloomberg that the Series C funds may be used to fund mergers and acquisitions. In a release, Bankman-Fried also mentioned that FTX will seek additional trading licenses around the globe
Also, in the beginning of January, FTX announced its own investment arm: FTX Launches $2 Billion Web3 Venture Fund Led by Lightspeed’s Amy Wu
Where would FTX sit if it was a cryptocurrency?
FTX would be #7 between Cardano and Solana. Not bad for such a recent company right?
Let's see what will happen next but surely CEX competition has been hitting up lately and regulatory pressures are just starting to hit them.
What is your favorite CEX? As a US based customer and a non-US based customer. I would be curious to have your feedbacks.
Stay safe out there,
Sources:
- Crypto Exchange FTX Now Valued at $32 Billion With $400 Million Raise
- FTX Reaches $32B Valuation With $400M Fundraise
