FTX, one of the largest cryptocurrency exchanges by transaction volume, has seen its revenue grow by 1,046% in 2021; from $89 million in 2020, amassing a total of $1.02 billion. This information was gotten from CNBC, which cited internal documents seen by them.
FTX was founded three years ago by former Wall Street quant trader, Sam Bankman-Fried; who is the second richest man in crypto today. The 30-year-old CEO has recently stepped in as the industry’s lender of last resort; looking to backstop companies as liquidity dried up.
It looks like FTX’s bumper performance in 2021 is the reason why FTX has the capital; and funds to support many cryptocurrency companies during the current crypto winter.
According to the documents seen, FTX had roughly $2.5 billion in cash at the end of last year with 27% profit margins. Margins were closer to 50% if advertising and “related party” expenses are stripped out.
It last raised funds in January, collecting $400 million from investors like SoftBank’s Vision Fund 2 and Tiger Global, at a $32 billion valuation.