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With the broad capital backing cryptocurrency firms are enjoying, the FalconX valuation is a testament of the growing number of unicorns in the global cryptocurrency ecosystem.
San Mateo, California-based digital currency trading platform, FalconX has increased its valuation following a new funding round in which it raised $210 million. The capital raise was led by Altimeter Capital, Sapphire Ventures, B Capital Group and Tiger Global Management, while other investors including Amex Ventures, an arm of American Express Company (NYSE: AXP), as well as Mirae Asset also participated.
FalconX has charted a very ambitious growth path for itself in the past five months, increasing its valuation to $3.75 billion as confirmed by Chief Executive Officer Raghu Yarlagadda in an interview per a Bloomberg report. The FalconX boss also confirmed that the company’s monthly transaction volume is now in excess of $10 billion.
As an emerging unicorn in digital currency trading offerings, FalconX has inched a new service in which it provides its clients with a reliable pricing detail for various cryptocurrencies. This feature according to Yarlagadda is boosted by the exchange’s “connectivity with over 100 venues, including cryptocurrency exchanges like Coinbase and FTX, proprietary trading firms and OTC desks.”
“As institutional investors continue entering the cryptocurrency market, FalconX has significantly scaled its business and product lines to meet their needs,” Scott Shleifer, a partner at Tiger Global Management, said in an emailed statement. “We’re excited to double down on the leading one-stop-shop for institutional trading, credit and clearing,” he said, referencing Tiger’s backing of FalconX earlier this year at a $675 million valuation.
The unique business positioning of FalconX has influenced its positive disposition to investors who helped raise about $50 million back in March this year. FalconX says it will use the new capital injection to build its technical infrastructure, finance global expansion in new markets including Asia and in launching products inspired by customer requests.
Some of these request include delayed settlement product, which allows institutions to settle in 20 business days. As pointed out by Yarlagadda, FalconX does not take on exposure to market movements by over-collateralizing loans and reserving the right to liquidate positions. In all, the array of new products billed to be floated will contribute to the unique position occupied by the firm.
FalconX Valuation: Increasing the Number of Crypto Unicorns
With the broad capital backing cryptocurrency firms are enjoying, the FalconX valuation is a testament of the growing number of unicorns in the global cryptocurrency ecosystem. Per earlier Coinspeaker report, Luxembourg-based trading firm, Blocktrade pulled $25.8 million from investors while Indoniesian outfit, Pintu secured $35 million in like manner.
The growing financial injection showcases the willingness of mainstream companies to take an early position in the growing world of cryptocurrencies and the firms providing services in the space. The success of Coinbase Global Inc (NASDAQ: COIN) when it went public in April remains a yardstick for both investors and the startups alike.