Digital Assets: Crypto Exchange FTX Snaps Up Portfolio Tracker Blockfolio for $150M
In one stroke, FTX gets access to Blockfolio’s 6 million users.
FTX is a cryptocurrency derivatives exchange that offers spot and futures trading on various cryptocurrencies, the world’s first liquid cryptocurrency index future, futures that settle to the absolute change in the price of a coin over time, options, leveraged tokens, and other such innovative crypto products. The institutional-focused exchange acquired Blockfolio, a portfolio tracker that supports over 10,000 cryptocurrencies and blockchain assets across 500+ exchanges. (THE BLOCK)
The deal was struck for $ 150 million payable in a mix of equity, cash and FTX’s native tokens
FTX eyeing expansion of retail user base
The sticker price of the acquisition ranks the deal amongst the largest M&A transactions in digital assets this year.
According to Coin Desk, the deal appears to be the sixth-largest acquisition in crypto sector history.
Discussions between FTX and Blockfolio initially commenced on the subject of introducing new products such as in-app trading aimed at the latter’s user base of 6 million retail clients.
However, over a few months, the discussions shifted to an acquisition.
Chief executive Sam Bankman-Fried confirmed to The Block that the deal will help FTX expand its retail footprint.
“If you look at the billions of dollars and hundreds of millions of users on apps like Robinhood, Cash App, Paypal, Coinbase, etc., you can get a sense of the scale of growth that’s not just theoretically possible but in fact achieved here,” Bankman-Fried said. “And in the end, those are just examples, not the largest vision you could have for Blockfolio.”
The two companies are collaborating on a unique retail trading feature to be launched this fall, says The Block. The move could be mutually beneficial, with additional liquidity a key gain for FTX.
According to Bankman-Fried, he intends to offer the best products within the FTX ecosystem to Blockfolio’s retail clients.
He’ll probably deliver, going by his track record.
In the middle of the bear market in late 2018/early 2019, Bankman-Fried started building out FTX. Says Blockfolio in a blog:
“In a little over a year, they’ve built one of the top exchanges in the world and innovated on new products at an absolutely relentless pace. What’s more, they’ve done so with extremely high integrity.”
Related Story: Revolut Opens Up Crypto Trading To All Users; Cites 2008 GFC
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