FTX was among the many cryptocurrency exchanges with a front row seat to witness the cryptocurrency hype of 2021, as Bitcoin (BTC) and other cryptocurrencies hit their all-time highs. Driven by massive customer entry, partnerships, sponsorships and other factors, FTX’s revenue would grow by 1000% in 2021, internal documents revealed.
Verified financial data for 2020-2021 shows that FTX has seen a 1000% increase in revenue, growing from $ 90 million in 2020 to $ 1.2 billion in 2021, CNBC said while supporting access to papers.
The revenue split reveals an 1842.85% increase in operating income for FTX, from $ 14 million to $ 272 million in one year. The cryptocurrency exchange amassed $ 388 million in net profit, an increase of 2,182.35% from last year’s $ 17 million.
FTX reportedly earned $ 270 million in the first quarter of 2022. However, the exchange’s track record during the cryptocurrency winter has yet to be revealed. Despite the stellar performance of the first quarter, the ongoing crypto winter has most likely affected the growth trajectory due to numerous market crashes.
The report also claims that FTX owned $ 2.5 billion in cash by the end of 2021 with a 27% profit margin.
FTX has not yet responded to Cointelegraph’s request for comment.
Related: FTX US among 5 companies to receive termination and desist letters from FDIC
Binance CEO Changpeng ‘CZ’ Zhao recently raised concerns about jitter, a phenomenon in which an existing trade order is postponed to allow for the completion of new operations.
I just learned a new word, nervousness. In 1 particular trade, sometimes your orders will be stuck for a while and some other orders will come in front of you. Apparently, this happens often enough on this exchange that traders have coined a term for it, nervousness. (front)
– CZ Binance (@cz_binance) 19 August 2022
While CZ didn’t explicitly target any particular exchange during the discussion, the crypto community on Twitter speculated that it was aimed at FTX. “All of you guys knew and didn’t say anything. We have to fight the bad players, “he added.