FTX Expanding NFT Markets, Raising Billions
FTX is raising billions to expand to new markets, and launch their NFT marketplace globally.
FTX, the third largest crypto exchange by volume (behind Binance and Coinbase), is expanding it’s NFT marketplace support to include Ethereum-based NFTs. Previously, FTXs NFT marketplace only included Solana, a chain into which FTX founder Sam Bankman-Fried has invested heavily and with which his investment group Alameda Research has very deep ties.
Ethereum has remained the top chain for NFTs, largely because most major NFT exchanges only support minting and selling of Ethereum based ERC-721 tokens. The largest NFT marketplace, OpenSea, generated $6.9B in trading volume last quarter without accepting any fiat payments. Even if FTX only takes a chunk of that volume, there is a substantial amount of money to be made in NFTs.
Closely timed with the NFT marketplace launch, FTX announced that it was seeking to raise $1.5B at a $32B valuation. This would benchmark FTX.US at an $8B valuation. This is coming just 6 weeks after FTX raised $420.69M Series B from 69 investors, which valued the company at $25B. Bankman-Fried said this raise was going to be used for a number of acquisitions to get FTX into more countries and get more users.