This 3-Year-Old Crypto Company Reported a 1000% Increase in Revenue to $1.02 Billion in 2021
Riding the crypto boom during Covid-19, three-year-old Bahamas-based crypto derivatives exchange FTX Trading Ltd. saw a 1,000% increase in revenue from $89 million to 1.02 billion dollars in 2021, mainly thanks to its innovative trading activity and wave of acquisitions made on a global scale. The company’s profit for the period also rose from just $17 million to $388 million.
In the first quarter of 2022, US-based Sam Bankman-Fried-led FTX reported $270 million in revenue and the crypto company is also eyeing over $1 billion in revenue in the first quarter of 2022. during the full fiscal year, disclosed the private company’s financial data, viewed by a global business media platform, shows.
About 60% of FTX’s revenue came from futures trading fees and 16% from spot trades. Despite a blockbuster performance in 2021 and the first quarter of 2022, it is unclear how the company performed during the second quarter of 2022, a period when crypto prices fell to new lows.
Launched in May 2019, FTX is backed by Alameda Research, a $100 million AUM quantitative crypto trading company that was founded by Sam Bankman-Fried. The firm accounts for 6% of FTX’s trading volumes, trading over $600 million and $1 billion daily.
FTX offers products including derivatives, options, volatility products and leveraged tokens, the first in the industry. The company was co-founded by MIT graduates Sam Bankman-Fried and Gary Wang. While Sam was a trader in the international ETF office of Jane Street Capital before founding FTX, Gary was a software engineer at Google before founding FTX.
The company has recently resorted to a lending spree, monitoring companies facing cash shortages and acquiring troubled assets to build a fleet of global subsidiaries. Its recent acquisitions include Robinhood (7.6% stake), BlockFi, Digital Assets DA AG, Switzerland, and IFS Group and Hive, Australia. He also bought around 15 small businesses in Germany, Turkey and the United Arab Emirates, among other countries.
30-year-old multi-billionaire Sam Bankman-Fried in an exclusive interview with Fortune global magazine, had recently said that the crypto winter, a time of major downturns in the global crypto market, had already shown the worst of it and would soon pass. His net worth is valued at $11.5 billion, according to Fortune The data.
Meanwhile, global crypto prices are in negative territory today, with most cryptocurrencies trading in the red over the past 24 hours. The world’s largest cryptocurrency Bitcoin is down 0.51% at $21,273.80, while the Ethereum blockchain is down 2.99% at $1,571.94. USDT is 0.03%; Solana 3.34%; Dogecoin 3.74%; and Shiba Inu down 0.76%.
This year, the carnage on Wall Street has had the biggest impact on global cryptocurrencies, with a number of them seeing price erosion between 85% and 100% from their all-time highs. At the top of the list is Internet Computer, whose price has eroded by 99% after falling from $750 to $6. There are 34 currencies that have seen their values erode by more than 90%, while 26 currencies have lost between 85% and 90%.
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