FTX is raising $2 billion in venture capital for startups in the crypto-industry. FTX CEO Bankman-Fried has been relatively quiet about the deal. However, he lamented the reluctance of venture capitalists to back more crypto startups, especially during the current market downturn. This article is intended to fill in some of the gaps. Listed below are four notable items from this story.
FTX raises $2 billion in venture funding for crypto-industry startups
FTX, the cryptocurrency exchange, has just announced that it will invest in new ventures in the crypto industry. The company, valued at $18 billion last July, has previously invested in the digital asset market. Earlier this year, FTX participated in a $100 million funding initiative, and in November, it announced its first crypto fund, along with Lightspeed Venture Partners and Solana Ventures.
CEO Bankman-Fried is quiet about BlockFi deal
The CEO of FTX, Sam Bankman-Fried, remains quiet about a proposed BlockFi deal. The CEO is reportedly considering the option of selling his company, but has not yet spoken publicly about it. During the last few weeks, Bankman-Fried has been active in other high-profile investments, including a stake in the FTX exchange. He has also made comments on the reluctance of venture capitalists to provide backstops to start-ups, especially during a market downturn.
Amy Wu joins FTX Ventures
FTX Ventures has just announced the addition of new managing partner Amy Wu to its investment team. Wu, formerly the general partner of Lightspeed Venture Partners, will lead the $2 billion Web3 venture capital fund. She will also oversee gaming, commercial space, and mergers and acquisitions initiatives. Wu joined FTX earlier this year from Lightspeed, where she helped to pursue deals with Offchain Labs, Alchemy, and Parallel Finance. Prior to this, Wu worked at Discovery and Insight Venture Partners, where she was responsible for establishing a $100 million gaming fund.
FTX offers equities trading
Cryptocurrency exchange FTX has announced it will soon offer stock trading capabilities to its users. Currently available to select US users, the functionality will be extended to the rest of the world over the next few months. The company also said that it is in a good position to take advantage of future bull runs. It will first offer options, and then later on will roll out equities. FTX’s new stock trading feature will let users purchase shares of various stocks, including IPOs, which may be traded in a variety of ways.
FTX acquired FTX outright
FTX is a global exchange and has been in business for almost a decade. In February, it acquired Japanese exchange Liquid Group. The deal gives the exchange more customers and licenses in Asia. Its acquisition is a good way for it to expand its reach globally. But there are a number of problems with this deal. For one, FTX faces a lack of regulation in some areas of the world, including Japan.
FTX’s ads promise bitcoin to four winners
Several cryptocurrency companies have planned to run advertisements during the Super Bowl, including FTX, which plans to give away millions of dollars in bitcoin to four lucky winners. The ad is expected to air during the second half of the game and will be promoted on FTX’s social media accounts. FTX, which is based in the Bahamas, has been heavily investing in sports partnerships, such as an ad featuring NFL quarterback Tom Brady. The company has also recently renamed the Miami Heat’s arena as FTX Arena. FTX’s CEO has recently moved the company’s headquarters from Hong Kong to the Bahamas.
FTX’s Robinhood ownership
FTX has a stake in Robinhood, which is a cryptocurrency exchange. FTX CEO Samuel Bankman-Fried has revealed that he has a 7.6% stake in the cryptocurrency trading platform. However, he has made clear that he does not intend to take control of Robinhood. The founders of Robinhood have a 64% ownership stake and a dual-class share structure gives them that power. FTX has not yet approached Robinhood with a buyout proposal.