FTX is one of the fastest-growing cryptocurrency exchanges in the world. A year ago, the exchange was valued at around $2.5 billion, but it has grown by more than ten folds over the past year with a valuation of $25 billion.
Sam Bankman-Fried’s FTX Seeks to Raise $1.5 Billion
FTX, the crypto exchange owned by Sam Bankman-Fried, is seeking to raise $1.5 billion in a new funding round. This latest development will take FTX’s total valuation to $32 billion while FTX.US will be valued at $8 billion.
According to The Information, investors currently value the company at $25 billion while its United States affiliate FTX.US is valued at $8 billion. The Information cited two unnamed sources familiar with the matter.
This latest development comes just a few weeks after FTX raised $420 million in a Series B-1 funding round. The funding round was led by BlackRock and Tiger Global. The FTX team is yet to comment or issue an official statement on the upcoming fund.
FTX Continues to Grow
FTX is one of the leading cryptocurrency exchanges in the world. Over the past few months, the exchange has seen its trading volume and market value increase. FTX.US NFT, the NFT platform of the cryptocurrency exchange, recently expanded its scope.
The NFT platform previously supported only Solana-based nonfungible tokens. However, it recently announced that it had expanded its scope to now include Ethereum-based NFTs. FTX has been spending hundreds of millions of dollars in acquisitions and marketing in recent months.
In a recent interview, Bankman-Fried said FTX had to spend big on marketing and adverts because the crypto exchange is not the first choice for most people entering the cryptocurrency market newly. Hence, they need to spend big on advert and marketing to compete with the other leading cryptocurrency exchanges.
Bankman-Fried, in addition to the top executives of some crypto companies, including Coinbase, Circle and Paxos, is set to speak at a congress hearing later this week. The hearing is titled “Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United States.” Congress is seeking to understand the challenges and benefits of the cryptocurrency space.