The world-famous cryptocurrency exchange platform FTX increased its revenue by a lot more than 1,000% during 2021, from $89 million to $1020 million, in accordance with company financial documents leaked to news outlet CNBC.
Based on the documents, FTXs net revenues during 2021 grew exponentially to a lot more than $387 million. A substantial increase when compared to $14 million it manufactured in 2020.
The Crypto Winter is really a Billion Dollars Opportunity
In 2022, the business has continued its hot streak regardless of the bear market that brought several cryptocurrency exchanges to turn off. Through the first quarter of the entire year, it made over $270 million in profit and is on its way to accumulating over $1.1 Billion in revenue, in accordance with sources cited by CNBC.
The mystery is: How did the business continue steadily to obtain such great results regardless of the damages of the crypto-winter? CNBC reported that FTX didn’t desire to answer this question. Sam Bankman-Fried, CEO and founder of the business, has recently confirmed the figures.
It really is worth mentioning that FTX was founded three years ago and, in that short time, has turned into a significant competitor to Binance and Coinbase, two exchanges that hold a big share of the cryptocurrency user base. However, unlike FTX, they’re not doing this well through the crypto winter.
For instance, through the first quarter of 2022, Coinbase reported a 64% decline in revenue from the prior quarter, representing a net lack of a lot more than $1.1 billion. It even had to lay off a significant section of its staff in a controversial decision widely discussed in every of crypto Twitter.
FTX is Building on Bearish Times
Up to now this season, FTX has acquired various companies, such as for example Bitvo, a Canadian trading platform, and Embed Financial Technologies, an equity clearing platform, to improve its growth on the market.
In July 2022, FTX wanted to buy Voyager Digital, however the company refused. Its lawyers said the proposal had not been really fair or good for them.
It had been an extremely low offer disguised as a white knights ransom.
Although Bankman-Fried has repeatedly discussed his intention to greatly help other crypto startups, additionally it is true that his company has had advantage of the existing conditions to get some troubled businesses.
Currently, FTX is discussing the purchase of Bithumb, a Korean cryptocurrency exchange, and reached an agreement with BlockFi, to get it for $240 million. In addition, it tried to get Celsius but backed out soon after.
With each one of these bailouts and acquisitions up for grabs, it really is hard to doubt SBFs words. As Nathan Rothschild would say, The exchange is actually buying on the sound of cannons. However, unlike the final portion of the financial adagio, it has still not sold beneath the sound of the trumpets.