By
Chimamanda U. Martha
April 19th, 2024
The cryptocurrency exchange managed to raise record funding during the last quarter with its valuations soaring by more than 3x.
On Thursday, November 11, crypto exchange FTX US reported its Q3 2021 earnings along with a large uptick in investor activity and trading volumes during this period.
FTX US in Q3 2021
For the quarter ending September, FTX’s average daily trading volume surged by 512% at approximately $360 million. Besides, the exchange also registered a peak volume of $807 million on September 7. Furthermore, FTX US reported a nice 52% jump in its user base during the September quarter.
By the end of the third quarter, FTX claims that it holds 4.5% of the U.S. crypto spot market trading volumes. This is nearly double from less than 2% at the start of July. Speaking of this growth, Brett Harrison, President of FTX US said:
“The continued growth and success of the FTX US platform is a testament to our team’s dedication to delivering industry-leading technology and unrivaled customer service. The trust and support of our user base has allowed FTX US to become the fastest growing and most in-demand crypto exchange in the US, but we have barely scratched the surface. We will continue to improve our existing offerings and rapidly expand into new areas, including derivatives, NFTs, and payment services.”
FTX’s Key Acquisitions and Funding
The last quarter for crypto exchange FTX was equally eventful and growth-oriented for crypto exchange FTX. One of the biggest milestones was the acquisition of the derivatives trading platform LedgerX.
The company has now rebranded it to FTX US Derivatives and thus will offer to license crypto futures and options to retail as well institutional players. The FTX US President Harrison also noted that they will engage in meaningful dialogue with regulators to play a central role in defining the crypto regulatory policy in the United States.
Besides, the crypto exchange has successfully managed to raise money while smashing crypto funding records. During the third quarter, the crypto exchange raised a staggering $900 million from private investors. This helped the crypto exchange to quickly enter the category of decacorn startups.
In the last month of October, FTX secured additional funding of $420 million from 69 investors. This raised the company’s total valuations to a staggering $25 billion.
Interestingly, FTX has managed to deliver outstanding performance while its rival Coinbase witnessed a drop in trading volumes. It looks as if FTX has been eating into the market share of some of the biggest players in this space.