Trading firm FTX has become the latest venture to raise a whopping amount of money for its new cryptocurrency exchange.
FTX – How Much Competition Can It Bring?
As of late, several new business platforms, such as the PIT, have emerged to take aim at the practice of crypto trading. This is likely attributed to the fact that bitcoin and other cryptocurrencies have been on the rise over the past few months, even though there have been some rough patches dispersed throughout the middle. At press time, for example, bitcoin is trading for a little over $11,700, though it had spiked above $12,000 for the first time since June during today’s early morning hours.
This can be attributed more to correction activity rather than an inability to move beyond its present position. Bitcoin has been at $11,700 for roughly 24 hours, and the jump to $12,000 followed by the swift fall back to its previous price is not something we haven’t seen before. Typically, bitcoin and other mainstream forms of crypto are known to fall back slightly following a speedy hike while it works on attaining its new and larger price through long-term measures, rather than simple speculation.
Overall, FTX has raised an impressive $8 million to build out its trading platform. The company was founded by Alameda Research, which presently monitors about $100 million in customer assets and enjoys a daily trading volume of approximately $1 billion, making it comparable to Binance, the largest and most popular cryptocurrency exchange in the world.
FTX is designed more with institutional traders in mind and getting them involved in the world of digital assets trading. Many analysts claim that it’s these institutional players which will give the crypto arena the legitimacy it needs to survive alongside precious metals, fiat and other investment tools. At the same time, it does offer education and crypto trading to retail players, hoping this will encourage more “first-timers” to consider adding crypto to their portfolios.
Among the leaders of the firm’s $8 million funding round were blockchain fund Proof of Capital; Chris McCann of Greylock Capital; FBG; Galois Capital, and Consensus Lab.
CEO of FTX Sam Bankman-Fried commented in a statement:
I’m personally very passionate about trading, so FTX is a platform built by traders for traders. In creating FTX, I wanted to build a platform for professionals like me, while also bringing crypto trading to the mass market and first-time users.
A Strong and Sturdy Partnerhsip
Chris McCann of Greylock Capital, which helped to charge and lead the funding round, added a few words of his own, explaining:
I am thrilled to partner with Sam and his team. His love for trading really shows in their product and Proof of Capital is honored to help the company go to market in Asia.
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