FTX is officially one of the world’s largest startups, crypto or not. Its recent astounding US$32 billion valuation has piqued the interest of tech and crypto watchers. Along with the thriving FTX exchange, the FTT token has seen significant growth in the last two years. Can this rate of expansion be maintained?
FTX (FTT) is a Hong Kong-based one-stop cryptocurrency exchange that provides investors and traders with derivatives, fiat-to-crypto, crypto-to-crypto, and OTC solutions. FTT, a native token, powers the exchange.
Traders can save money on trading fees and get a range of additional benefits by using FTT on FTX. Staking FTT grants customers additional benefits on the market, such as access to airdrops and fee reductions.
FTX serves as a utility token as well as a proxy bet on the FTX ecosystem’s growth.
FTX has quickly grown to prominence in the crypto exchange industry, despite the fact that it was only created in 2019. It is presently the world’s second largest fiat-to-crypto exchange, trailing only Coinbase, with 18% of the fiat-to-crypto trading volume. It also has the second-largest open interest in Bitcoin futures in the world.
Since the beginning of 2020, the relative volume of FTX growth has been extraordinary. While several competitors struggled to handle and capture the inflow of new crypto buyers in 2021, FTX’s volume soared, and it appeared to onboard many new users competently.
The exchange has made news in the previous week following a US$400 million series C financing, which gave FTX a massive US$32 billion valuation. According to data from the Visual Capitalist, FTX is not only enormous for a crypto company; its new valuation places it as the world’s eighth largest start-up of any kind.
FTX Bigger Than Top Tech Gaints
It outnumbers tech behemoths like Epic Games, Nubank, and Grammarly. Paradigm, Temasek, Multicoin Capital, and SoftBank were among the investors in the round. All of the participants had previously invested in FTX rounds. This Series C fundraising comes just a few months after the company raised $420 million, valuing it at $25 billion at the time.
“Their volume and market share growth over the past two years tells a clear tale… just the beginning of what’s to come!” remarked Matt Huang, co-founder of VC firm Paradigm, on Twitter after the Series C. “A generational firm in the making,” Huang added of FTX.
FTT’s market valuation was US$653.3 million at the time, but it is now worth US$4.9 billion.
The price of the FTT token has increased from US$11.86 to US$45.14 in the recent year. This represents a 281% increase in value.
In the previous year, the performance of exchange tokens was compared
While the growth of other exchange tokens such as Binance’s BNB and Crypto.com’s CRO may not be as thrilling, FTT’s gains look to be more stable and cycle resistant than others, as it has demonstrated the capacity to keep relative value and resilience during bad periods.
Its price performance over the last month is a sign of its resiliency. While Bitcoin (BTC) and Binance-coin (BNB), two other exchange tokens, have fallen by 21% and 28% respectively in the last 30 days due to bearish global macro tailwinds, FTT has risen by 3%.
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