We are truly living in a meme-centric world. Made popular by social media, memes are even popping up in funding rounds. Newcomer cryptocurrency exchange, FTX, just disclosed raising $420,690,000 during an add-on Series B-1 funding round at a valuation of $25 billion. A total of 69 investors, ranging from BlackRock and Sequoia to the Ontario Teachers’ Pension Plan Board, participated in the funding round. FTX had just raised $900 million at an $18 billion valuation back in July 2021.
Launched in 2019, FTX has managed to claw market share from a growing pool of competitors to become one of the world’s largest cryptocurrency exchanges. Today, the exchange battles the likes of Coinbase, Binance, and Kraken for crypto-exchange dominance. One advantage FTX CEO Sam Bankman-Fried says helping drive growth is the exchange’s focus on working closely with financial regulators to ensure not to run afoul with any existing securities laws.
“Today we are focused on establishing FTX as a trustworthy and innovative exchange by regularly engaging with regulators around the world, and constantly seeking opportunities to enhance our offerings for digital asset investors,” says FTX CEO Sam Bankman-Fried.
FTX says the proceeds of the latest funding round will be largely used for mergers & acquisitions opportunities, as well as marketing efforts. Earlier this year, the crypto exchange acquired LedgerX to expand its cryptocurrency futures and options trading capabilities. The company says the will look to acquire the proper licensing to offer Bitcoin futures trading abilities to U.S. customers.
The latest funding comes just a day after Bitcoin reached a new all-time high breaking through $67,000 on news of the first futures-based ETF approval in the United States. However, FTX says it has seen user growth of 48% and trading volume surge 75% since its July Series B. Sprinkle in the crypto exchange’s high-profile brand ambassadors like Tom Brady and Steph Curry, and you face some hyper-growth conditions.