FTX Increased Revenue By 1,000% in 2021 —And 2022 Looks Even Better
Popular cryptocurrency exchange platform FTX increased its revenue by more than 1,000% in 2021, from $ 89 million to $ 1020 million, according to the company’s financial documents leaked to CNBC news.
According to the documents, FTX’s net revenues in 2021 grew exponentially to exceed $ 387 million. A significant increase compared to the 14 million dollars collected in 2020.
Crypto Winter is a billion dollar opportunity
In 2022, the company continued its streak despite the bear market that led to the closure of several cryptocurrency exchanges. During the first quarter of the year, it made over $ 270 million in profits and is set to amass over $ 1.1 billion in revenue, according to sources cited by CNBC.
The mystery is: how did the company continue to achieve such good results despite the damage of the crypto-winter? CNBC reported that FTX did not want to answer this question. Sam Bankman-Fried, the company’s CEO and founder, has already confirmed the figures.
It is worth mentioning that FTX was founded 3 years ago and, in such a short time, has become a major competitor of Binance and Coinbase, two exchanges that hold a large chunk of the cryptocurrency user base. However, unlike FTX, they aren’t doing so well during the crypto winter.
For example, during the first quarter of 2022, Coinbase recorded a 64% decline in revenue from the previous quarter, with a net loss of more than $ 1.1 billion. He even had to fire a major portion of his staff in a controversial decision widely discussed across crypto Twitter.
FTX is building on bearish times
So far this year, FTX has acquired various companies, such as Bitvo, a Canadian trading platform, and Embed Financial Technologies, an equity clearing platform, to increase its growth in the market.
In July 2022, FTX offered to buy Voyager Digital, but the company declined. His lawyers said the proposal wasn’t really right or beneficial to them.
“It was a very low offer disguised as a white knight’s ransom.”
While Bankman-Fried has repeatedly talked about his intention to help other cryptocurrency startups, it’s also true that his company has taken advantage of current conditions to buy some troubled assets.
Currently, FTX is discussing the purchase of Bithumb, a Korean cryptocurrency exchange, and has reached an agreement with BlockFi, to purchase it for $ 240 million. He also tried to buy Celsius but withdrew shortly after.
With all these bailouts and acquisitions on the table, it’s hard to doubt SBF’s words. As Nathan Rothschild would say, the exchange is clearly buying on the sound of guns. However, unlike the latter part of the financial adage, it has not yet sold on the sound of trumpets.
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