FTX, the cryptocurrency derivatives exchange founded by Sam Bankman-Fried, has closed a $900 million funding round, highlighting once again that venture capitalists are ignoring market turmoil in their quest to uncover quality blockchain plays.
The Series B investment round attracted more than 60 participants, including Softbank, Sequoia Capital, Coinbase Ventures, Multicoin, VanEck and the Paul Tudor Jones family.
With the raise, FTX's valuation rose to $18 billion, making it one of the largest cryptocurrency companies in the world. Just a year ago, the derivatives exchange had a valuation of $1.2 billion.
Founded in 2018, FTX operates one of the world's largest cryptocurrency-related businesses, with average daily volumes exceeding $10 billion . With headquarters in Hong Kong and a parent company in Antigua, the company has been very active in acquisitions and branding, buying out Blockfolio for $150 million in August 2020. In March, the exchange secured the naming rights to the Miami Heat stadium for the next 19 years.
Despite the recent market turmoil engulfing cryptocurrencies, venture firms continue to back cryptocurrency-focused startups with greater conviction. Silicon Valley's Andreessen Horowitz launched a $2.2 billion cryptocurrency venture fund last month , the largest in history.
