By
Chimamanda U. Martha
April 25th, 2024
Amid its aggressive expansion plans and rapid growth, crypto exchange FTX grabs a 10.8% market share for crypto.
Cryptocurrency exchange FTX has witnessed solid growth over the last year. In another milestone, FTX overtook Coinbase last month to become the second-largest centralized cryptocurrency exchange in terms of market share.
For the last month of May 2022, Binance continued to lead the chart with a staggering 64% market share. Crypto exchange FTX stood second with a 10.8% market share, on the other hand, Coinbase Global Inc (NASDAQ: COIN) slipped to third with a 9.6% market share.
Crypto exchange Coinbase has been currently sailing through tough waters. Amid the crypto market slowdown, Coinbase’s revenue for Q1 2022 dropped 27%. The company also reported a net loss of $430 million. The COIN stock is already down by more than 72% year-to-date. After Coinbase, some of the most popular exchanges are Kraken (3.7%), Bitfinex (2.6%), and LMAX Digital (2.6%), as per the Block Research.
On the other hand, crypto exchange FTX led by Sam Bankman-Fried has been expanding its footprint very rapidly in the crypto space. It sees huge potential in the US market and thus has been expanding its product offerings.
After its successful stint in the crypto space, FTX is also willing to participate in the US stock market. Commenting on its decision to offer stock trading in the US market, FTX’s Brett Harrison said:
“With the launch of FTX Stocks, we have created a single integrated platform for retail investors to easily trade crypto, NFTs, and traditional stock offerings through a transparent and intuitive user interface.”
FTX to Facilitate Crypto Derivatives for Goldman Sachs
As per the latest report Wall Street banking giant Goldman Sachs has been in talks with FTX to facilitate derivatives trading in Bitcoin and other digital assets. For this, FTX has itself applied for license modification which allows it to operate as an exchange as well as derivatives intermediary.
FTX has applied to the US Commodities and Futures Trading Commission (CFTC) for the same. Brett Harrison, the president of FTX’s US division, said:
“We have multiple FCMs [futures commission merchants] already committed to integrating technologically with the exchange. There are several large ones you can probably name.”
IF FTX succeeds in its pursuit, it could also mark a big shift in the derivatives service offerings. This could also provide a direct threat and challenge to the providers of derivative products.