FTX Exchange Eyes For $1B Funding

FTX Exchange Eyes For $1B Funding

FTX Exchange, which is headquartered in Bahamas and is the biggest cryptocurrency trading platform in the world, has plans to raise one billion dollars in capital. It plans to accomplish this goal with the participation of private equity investors, in addition to hedge funds and institutional investors.

If FTX Exchange is successful in raising another billion in capital, its whole worth will rise to $32 billion. According to a number of recent news publications, Sam Bankman’s firm Fried’s is holding talks with a number of possible investors regarding the prospect of obtaining one billion dollars in a venture round.

There has not been an agreement reached about the fund just yet, and discussions over the fund are still under progress. Since the start of the crypto winter in May, FTX exchange has taken on the role of market consolidator, offering aid to a significant number of enterprises who are having trouble making ends meet.

Also Read: Hyperlane, A Crypto Startup, Gets Boost Funding Of $18.5M

A deal was struck between FTX and BlockFi, a lending firm that was having financial difficulties, a few of months ago. In addition to that, they made a rescue proposal for Voyager Digital and Bithumb. In order to carry out its other business objectives, FTX plans to use the $1 billion in cash on hand, in addition to the $400 million that was raised earlier this year.

The cryptocurrency exchange was initially a clone of Coinbase; however, it subsequently found different means of compensating traders, which contributed to the development in popularity of the exchange.

Also Read: Ethereum Network Plans To Reduce Carbon Emission By Up To 99%

The Number Of Crypto Users Might Increase To 1 Billion

The Number Of Crypto Users Might Increase To 1 Billion

The digital asset class and the number of crypto users are still in its formative stages at present. The Boston Consulting Group, Bitget, and Foresight Ventures collaborated to produce this research, the purpose of which was to highlight and quantify the development accomplished by this embryonic sector over the last several years.

Despite the recent market movement to the negative, the researchers placed a strong emphasis on the expansion of digital assets over the long run. When measured against 2017, the year in which Bitcoin, Ethereum, and several other significant cryptocurrencies achieved their prior all-time highs, the sector has experienced a phenomenal increase in only the last five years.

crypto users might increase to 1 billion

Also Read: Tesla Sells Bitcoin Worth $936 Million

While some have argued that this growth is unsustainable—notably Goldman Sachs Chief Executive Officer Lloyd Blankfein—the fact remains that there are now more than 2.9 million crypto users worldwide, with approximately $300 billion worth of digital assets exchanged every day.

The cryptocurrency market is growing at a rapid rate. It has been increasing by more than 100% every year since its inception in 2017. This makes it one of the fastest-growing markets in the world right now.

According to research conducted by the International Data Corporation (IDC), there were just 800 apps that were based on cryptocurrencies in 2017. However, this number has increased by a factor of more than ten and is already registered at 10,000 today. This is supported by a spike in institutional money, which now accounts for 68 percent of the entire trading volume in the cryptocurrency market.

Also Read: Value Of BTC Is About To Touch $24,000

Compare this to 2020 which was recorded in 2018. According to the report:
The price of cryptocurrencies generates attention, which in turn generates ideas and action, which ultimately generates innovation. The surge in popularity of initial coin offerings (ICOs) in 2017 paved the way for the launch of cryptocurrency exchanges that now dominate the industry.

The surge in popularity has prompted many institutional investors to join the fray. This is evident from the fact that there has been a considerable increase in the number of hedge funds, venture capital firms, and banks that are actively buying and selling cryptocurrencies.

In 2017, approximately 75 percent of individuals holding cryptocurrencies were based in North America. In addition to this, it was found that there is a significant correlation between the level of interest shown by institutions and their geographical location. For instance, pension funds have shown more interest in investing in cryptocurrencies compared to banks or companies because they provide retirement benefits for their employees.

Also Read: Singapore Govt Tightens Crypto Regulations

It can also be seen from the research results that there exists a significant correlation between the age bracket of investors and their level of interest shown by institutions while buying cryptocurrencies: those who are younger tend to show more interest than older ones do; however this trend reverses as we move up through age brackets until we reach those who are older than 50 years old (or even 70 years old).

The number of people holding cryptocurrencies might reach one billion by the year 2030 if the emerging asset class follows a path comparable to that of the internet. To put it another way, the adoption of digital assets is about equivalent to the state of the internet in 1998.

While hedge funds and venture capital firms had recorded over $70 billion in crypto assets under management (AUM) by the year 2021, banks and corporations had registered $2.5 billion, government funds had recorded $4 billion, and pension funds had recorded $1 billion.

The trend suggests that there will be gains, and there is a chance that these investments may be profitable in the long term.

FTX Acquires Canada Based Bitvo Inc.

FTX Acquires Canada Based Bitvo Inc.

The Bahamas-based FTX Exchange is planning to officially launch its business in Canada by acquiring Bitvo Inc. This Calgary-based cryptocurrency exchange is regulated by all 13 provincial and territorial securities commissions across the country.

FTX Exchange is one of the world’s largest cryptocurrency companies, with over $4 billion in revenue last year alone. FTX is acquiring Bitvo Inc at an exciting juncture for the cryptocurrency market, as we’re now seeing widespread price drops following a bubble-like burst earlier this year. However, this news speaks to the level of commitment that FTX has to this industry over the long term.

Several cryptocurrency companies, including Coinbase Global Inc., are implementing severe staff reductions to save money. The crypto lending company Celsius Network Ltd. has announced that it will be suspending operations indefinitely, which will leave millions of its customers in a precarious position while also accelerating a global selloff of cryptocurrencies.

Also Read: Bitcoin Price Tumbles Below $20K, Ether Price Hit Too

The acquisition will allow FTX Exchange to expand its offerings into Canada and help it compete with other exchanges such as Binance and Bittrex, which have already launched businesses here. The two companies have not divulged the precise terms or valuation of the acquisition, which is scheduled to be finalised in the third quarter of this year, pending approval from the relevant regulatory authorities.

Both companies’ chief executive officers have stated that users of their respective cryptocurrency platforms will not notice any changes shortly. However, they are expected to borrow certain features from one another in the coming months and make them available to users as a whole. The companies said that they do not anticipate that the deal will have any impact on the current levels of staffing.

In an interview, Mr Bankman-Fried said, “We’re focused and excited to be building a real Canadian footprint.”
He specifically cited the collaboration with a registered platform as one of the reasons for his optimism. “In particular, we’ve had some fantastic conversations with the government of Alberta, which has been constructive and is trying to take the lead in Canada and around the world for crypto policy and frameworks,” he said.

Also Read: Safemoon Price Drop : Down By 95% In 24 Hours

The Alberta government has been quick to demonstrate “immense interest” in the cryptocurrency space. Earlier in the year, Mr Schweitzer stated that companies operating in the cryptocurrency space were quick to explain “immense interest” in the province after the Alberta government promised in its Throne Speech that it would make the area a global leader and hub for crypto.

FTX will launch its operation in Calgary, Alberta. The company’s CEO, Mr Schweitzer, stated that this new venture would help FTX grow its reputation and the opportunities it offers in technology and innovation.

Mr Bankman-Fried added that FTX is also looking into other opportunities across Canada, not just Alberta. He stated, “for the time being, we do not have any specific plans in mind.” However, he added, “as we’ve said before, we’re looking to expand in places where regulators are working with the sector to create meaningful opportunities.”

Paytm Willing To Offer Cryptocurrency Trading, Waiting For The Clear Stand Of Govt.

paytm willing to start crypto trading

Cryptocurrencies are trending and profitable like never before. The prospect they offer is attracting several investors making cryptocurrencies the trillion-dollar industry. However, the other side of the coin is obscure and risky. Cryptocurrencies are volatile and hanging on the edge of the ban.

Paytm, India’s leading and trailblazer of online payments services seems to have recognised the profitability these e-currencies have shortly. Paytm is excited to offer cryptocurrency trading services on its financial services platform but the uncertainties clouding around the cryptocurrencies are prohibiting the company from venturing into this segment.

Madhur Deora, the CFO (Chief Financial Officer) of Paytm, said in an interview with Bloomberg that the unclear approach of the Indian regulatory system towards trading such virtual currencies is restraining Paytm from taking a positive step towards the crypto exchange services. If otherwise, Paytm can offer ease to its users in crypto trading, he further said.

Paytm is one of the earliest players in online money transfer and other financial services niche. The company has benefited tremendously during the demonstration phase and applied extensive strategies to penetrate deeper into the market. Paytm houses more than 300 million users and approximately 20 million merchants.

Crypto investors and enthusiasts raised scepticism about the future of cryptocurrencies in India after the Chinese government recently banned cryptocurrencies and all the services related to them within its realm. China ranked on top in cryptocurrency trading and mining before both activities were banned in September 2021 in the country.

When Nirmala Sitharaman, the Finance Minister of India, was asked if the central government would ban cryptocurrencies in India. She responded that India would not be shutting off all the possibilities when it comes to blockchain and cryptocurrencies. She also added that the people of Indian would be given ample time to experiment with digital currencies.

Cryptocurrencies we’re banned in India as per the directions of the Reserve Bank of India. However, the Supreme Court of India reinstated the ban on digital currencies in March 2020. Reserve Bank of India wanted to construct a legal framework to regulate and scrutinise cryptocurrency activities. However, bringing the digital currencies under regulations seems the time-consuming process for the Reserve Bank of India as the digital currencies don’t fall under assets, securities or currencies acknowledged by the RBI.

Madhur Deora said bitcoin and cryptocurrencies are still in a regulatory grey zone though not banned in India. If these digital currencies were ever a legal tender in the country, there was a chance of introducing new offerings by Paytm for crypto investors.

If Paytm starts offering crypto trading services, it will attract additional investors. The company has already applied for Initial Public Offering amounting to Rs 183 billion and is all set to list on the stock exchange around the second or third week of November. Paytm has received 10x of subscriptions first’s shares than the company has put for sale, tells Madhur Deora to Bloomberg in an interview. Additionally, the financial services platform has attracted more than 122 company investors who have purchased more than 38.3 million shares for Rs 2120 apiece.