On Tuesday, FTX, a cryptocurrency derivative platform, has announced that it made an incredible $8 million in its seed funding round.
FTX secured some of the key investors from the industry. They include Consensus Lab, venture capital Proof-of-capital, crypto hedge fund Galois Capital, and FBG, a crypto asset management firm.
The Promise of FTX
While reacting to the new funds, co-founder and CEO of FTX Sam Bankman-Fried expressed his intense passion in trading. He said that FTX is a platform created by traders for traders. He expressed that in creating FTX, he intended to craft a platform for professional traders like himself. At the same time, he wanted to make crypto trading available to the mass market as well as new users.
The founders of FTX boast hands-on experience in trading since they are Wall Street and Silicon Valley veterans. Alameda Research was then responsible for incubating the platform. This new cryptocurrency derivative platform offers services such as over-the-counter services, leverage tokens, and futures trading. What’s more, with FTX, investors get quarterly and perpetual futures instruments on big cryptocurrencies like Bitcoin, Tether, Binance Coin, and Ether. Its over-the-counter service, which is also a trading facility, has 20 digital assets and offers instant settlements at no fee.
The firm reports that it has incorporated features and services such as altcoin index futures and spot trading. Meanwhile, it has grossed a total trading volume of $300 million.
Proof-of-Capital and FTX Partnership
Proof-of-Capital was launched at the beginning of the year and has an exclusive focus on blockchain companies that are in their early stages. In April, the fund registered a $50 million funding round. At the same time, it partnered with HTC so that its portfolio companies can work with HTC and develop products for the consumer electronics manufacturer’s blockchain-enabled smartphone.
Chris McCann, a managing partner at Proof-of Capital, expressed his thrill at working with Sam Bankman-Fried and his team. He added that the cryptocurrency is proof of the CEO’s love for trading and was privileged to help FTX enter the Asian market.
BlockFi’s Imminent Revolution?
At the same time, after raising $18.3 million, BlockFi, a crypto lending platform, closed its Series A funding round. This closure comes as the company is planning its international expansion and the subsequent launch of new products.
Valar Ventures led the funding round. Other prior investors also got involved, including Avon Ventures, CMT Digital, Akuna Capital, Morgan Creek, Galaxy Digital, and several others. Valar has led previous Series A financings with some prominent fintech companies. However, this is the first time Valar has led fundings directly involving the cryptocurrency sector. This information is according to BlockFi CEO Zac Prince
According to James Fitzgerald, the general partner at Valar Ventures, BlockFi is developing unbelievable infrastructure to enable people to invest easily in cryptocurrencies. BlockFi’s second product allowed people to gain interest on assets and get involved in the burgeoning crypto-lending industry.
Zac Prince said that the second phase of the firm’s roadmap involves the launch of a Bitcoin rewards credit card. The third phase is all about expanding into new upcoming markets like Latin America. So far, it looks promising, but whether BlockFi is here to initiate a crypto revolution remains to be seen.