© Stocksak FTX To Raise New Funds for “Effective Purchases” in Crypto Crash
- New agreements could increase retail users, despite the crypto bear markets.
- Interest in FTX has increased recently as the cryptocurrency market has declined.
- Bulls assert that crypto needs to grow before it can attract more customers.
Sam Bankman-Fried, the founder of FTX Trading Ltd., stated that he is in discussion to raise new funds to make “effective purchases” during the crypto collapse.
At The Wall Street Journal’s Tech Live conference on Tuesday, Mr. Bankman-Fried stated that he views acquisitions as a way to increase the number of retail users on the cryptocurrency exchange he founded, a market segment he claimed FTX has so far been difficult to penetrate.
FTX is a regulated exchange for digital assets that offers a variety trading options, including CFDs as well as futures. Due to the recent plunge in crypto markets, FTX has seen increased interest.
Mr. Bankman-Fried said:
We’re seeing a lot of interest from institutional investors, and we also have some retail users who are looking to get in on the action,
According to Mr. Bankman Fried, he won’t focus on the bailout-style purchase he made earlier this summer when he tried saving two crypto lenders. He claimed that FTX, despite having a smaller user base than Bitcoin exchange Coinbase (NASDAQ.) Global Inc., conducts a much larger trade.
He also joked that he would create a cryptocurrency inspired cats, a reference for the launch of several digital currencies inspired by dogs.
The funding effort comes at an unfortunate time for cryptocurrency businesses that have seen user losses this past year due to a decrease in the value cryptocurrencies like bitcoin and Ethereum.
Ravi Mhatre (a partner at Lightspeed Venture Partners) stated that he was spending less time in decentralized finance fields that have lost interest due to falling prices.
Both crypto bulls agreed that there is still much to be done before the industry can attract more customers and get rid of its reputation for being a haven for economic speculation and fraud. The blockchain technology that underpins cryptocurrencies, according to Mr. Mhatre, is still “immature” and needs to develop to be widely adopted.
Mr. Mhatre said that innovation was relatively healthy. Although they remain upbeat about the industry’s long-term potential, Mr. Mhatre and Mr. Bankman-Fried said they were unsure when the crypto decline would reach its bottom.
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