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Sources claim that popular crypto exchange FTX is securing funding for several potential acquisitions, and has begun takeover negotiations.
FTX is reportedly raising funding to finance several potential acquisitions, including a retail-focused deal. According to inside sources, the Sam Bankman-Fried-led crypto exchange is evaluating numerous business ventures prime for a takeover. Negotiations on some of these potential acquisitions are already reportedly underway. However, CoinDesk reports that according to someone familiar with the matter, FTX is unlikely to continue raising funds if talks regarding potential acquisitions fall through.
FTX’s target capital sum is $32 billion, the same valuation it secured the last time it raised money back in January. However, this funding target for financing acquisitions seems like a tall order to some due to the crypto market decline. In fact, the rout across the broader crypto marketplace has seen the stock of FTX rival Coinbase (NASDAQ: COIN) plunge 70% this year.
FTX Seemingly Looks to Increase Visibility in Retail Trading
Bankman-Fried, who also functions as CEO of FTX, already has a leg in the door of retail trading. The 30-year-old American billionaire bought a 7.6% stake, or 56 million shares, in prominent financial services company Robinhood (NASDAQ: HOOD) on May 2nd. Bankman-Fried secured this sizable position in Robinhood through Antiguan firm Emergent Fidelity Technologies Limited. At the time, his stake was worth approximately $482 million at market close.
FTX’s retail expedition once again manifested some months back, when its US arm FTX.US began to offer stock trading to users in the country. Furthermore, FTX.US President Brett Harrison stated that the company would not charge trading fees at the time. Harrison also added that FTX.US would not monetize trades in a way akin to Robinhood.
Reports suggest that an FTX takeover of a retail investment-focused platform will further serve the Bahamian crypto exchange well. For instance, it could attract a wave of new users to FTX, which mostly focuses on sophisticated traders and professionals.
Acquisitions Funding Aside, FTX Suffers Glitches Following US Inflation Report
As FTX continues to generate funding for potential acquisitions, another major development recently unraveled at the exchange. Recently, it was reported that FTX froze under the strain of CPI volatility. This occurred as crypto exchanges jointly saw liquidations amounting to more than $110 million in the hour following the US inflation report.
FTX became unusable for some of its customers, causing many to feel disgruntled and frustrated. On Tuesday, September 13th, Bankman-Fried confirmed the issue in a Twitter post that read:
“…sorry about that — FTX didn’t actually go down but the website did wonky auto-refreshing for a lot of people which was pretty frustrating, rolling out a fix for that momentarily.”
Furthermore, an FTX spokesperson also addressed the CPI volatility situation in a statement to CoinDesk, saying:
“The resulting CPI volatility caused some users who were accessing the exchange via browser found that their webpage frequently refreshed, which made using it slower and more cumbersome. There was no downtime as a result of the volatility and the exchange remained running the entire time.”
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