FTX got off to a blazing start as the exchange closes its Series C funding round led by prominent backers.
No Signs of Slowing Down
FTX closes its Series C funding round securing $400 million, catapulting its valuation to $32 billion, closing in on Coinbase’s current market capitalization of over $40 billion.
The popular spot and derivatives exchange platform received funding from Singapore state-owned investment arm Temasek Holdings, Paradigm, Softbank’s Vision Fund 2, Tiger Global, and Canada’s Ontario Teachers Pensions Plan Board.
FTX’s Chief Executive Officer (CEO), Sam Bankman-Fried in an interview with CNBC said that there is enthusiasm in the private market as money continues to flow in from venture capitalists compared to the public market. FTX saw a stellar growth in 2021 with 1500% increase in registration and has approximately 5 million active users.
FTX was valued at $18 billion after it closed its Series B funding round mid last year. The company has become a true force in the industry.
Long Term Growth
Investors continue to be undeterred by the recent market slump. Money continues to flow into crypto-based companies that are providing the building blocks for crypto adoption. FTX US, the US franchise arm of the company, recently closed its Series A funding round bringing its valuation to $8 billion.
Private investors are seeing massive investment opportunities and are ignoring the micro bear cycle that is engulfing the crypto market now. This round of funding will allow FTX to expand on its suite of products and its global presence.
Investors are bullish on crypto exchanges because it is the immediate go-to ramp for adoption. Adoption is expected to grow exponentially as more states roll out their crypto regulatory framework.
Regulation and Decentralization
There is an old misconception that regulation will erode decentralization. This could not be further from the truth. In order for crypto assets to be regarded as mainstream, there must be a proper framework that allows for integration with the existing legacy financial infrastructure. This integration is only possible through regulation.
Exchanges like FTX, Binance, Coinbase, and Crypto.com will be the catalyst for adoption in 2022.
Source : bsc.news
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