SoftBank Backs Coinbase Rival FTX US to Raise $400 Million at $8 Billion Valuation

January 26, 2022 7:14 AM EST

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Cryptocurrency exchange FTX US announced it has secured $400 million in its first external funding round, taking the company’s valuation to $8 billion and making it one of the highest-valued crypto firms. FTX US is a subsidiary of FTX crypto exchange, a major rival of Coinbase (NASDAQ: COIN).

Investors who participated in the funding include Temasek, the Ontario Teachers’ Pension Plan Board, and SoftBank’s Vision Fund 2.

The funding round underscores the investors’ appetite for the growing digital asset industry, in spite of a recent sharp drop in crypto prices.

The world’s two biggest cryptocurrencies Bitcoin and Ether have lost nearly half of their value since reaching all-time highs last fall, while altcoins have taken even a larger fall.

Brett Harrison, President of FTX US, said the recent events in the crypto market indicate how crypto is still a very “volatile asset class.”

“Volatility cuts both ways,” Harrison said. “With all of the large upturns that we’ve seen in crypto, we have to expect that there are going to be downturns as well. And we’re definitely in that period right now.”

FTX US said its average daily volumes on the platform rose by 7x in 2021, hitting over $800 million in November Bitcoin touched its latest record high.

The exchange handled more than $67 billion in spot crypto trades in 2021 and has about 1.2 million registered users at the moment. The company hopes the latest funding round will help it make it a stronger rival to other similar companies such as Coinbase and Robinhood.

By Senad Karaahmetovic | [email protected]

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