Crypto exchange FTX hits $32 billion valuation despite 'crypto winter' fears

• The funding values FTX at $32 billion, up from $25 billion in October 2021

• Some investors fear that the market may be on the cusp of “crypto winter”

Crypto exchange FTX Trading Ltd on Monday said its valuation jumped to $32 billion after raising $400 million in a funding round, highlighting the continued appetite of investors for the sector is still growing even as there is a sharp pullback in crypto prices.

The new valuation of the company is more than the market cap of the Nasdaq exchange or Twitter.

The capital injection will help the Bahamas-based company expand globally and obtain additional licenses in different markets. 

“FTX will look to continue interacting with regulators to facilitate access to digital assets in a safe and compliant manner,” FTX chief Sam Bankman-Fried said in a statement on Monday.

“We look forward to working alongside our investors to achieve our mission and continue our tremendous growth throughout 2022 and beyond.”

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Earlier, Bankman-Fried has told CoinDesk that the crypto exchange platform was planning acquisitions and partnerships to enter more countries and grow its user base.

Two fundings

Last week, FTX US, the sister firm of FTX, which competes with Coinbase Global Inc, raised $400 million in its first funding round, valuing it at $8 billion.

Singaporean state investing firm Temasek, Paradigm, Ontario Teachers’ Pension Plan Board, SoftBank, and Tiger Global were among others who funded both the company.

FTX, which offers derivative products and spot trading, rivals the world’s biggest digital currency exchange Binance.

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The latest funding round brings the total amount raised to $1.8 billion. It comes a little over three months after FTX raised $420 million, valuing the company $25 billion.

Crypto winter

The funding came at a time when some crypto investors fear that the market may be on the cusp of a more severe downturn known as “crypto winter.”

To date, Bitcoin, the world’s biggest digital currency in terms of market cap, is down 46% from its November record of almost $69,000, while other cryptocurrencies have slumped even further.

The last such occurrence of such bloodbath happened in late 2017 and early 2018 when Bitcoin plummeted around 80% from its then-record high.

Picture Credit: Crypto News