FTX has benefited greatly from the crypto winter, unlike some of its rivals who are battling to live.
Financial records from the well-known cryptocurrency exchange platform FTX were leaked to news site CNBC, showing that in 2021, income surged by more than 1,000%, from $89 million to $1020 million.
The filings state that FTX’s net income for 2021 increased significantly to more than $387 million. a considerable rise from the $14 million it brought in in 2020.
The opportunity to make billions from the crypto winter
Despite the bad market that forced some cryptocurrency exchanges to close their doors in 2022, the firm has kept up its winning ways.
According to reports quoted by CNBC, it generated over $270 million in profit during the first quarter of the year and is on track to generate over $1.1 billion in sales.
How did the business manage to maintain such positive outcomes in spite of the harm caused by the crypto-winter is the enigma. According to CNBC, FTX declined to respond to this inquiry.
The data have previously been verified by the company’s CEO and founder, Sam Bankman-Fried.
It is important to note that FTX was established three years ago and has quickly grown to be a serious rival to Binance and Coinbase, two exchanges that account for a significant portion of the bitcoin user population.
They are not doing as well during the crypto winter, in contrast to FTX.
For instance, Coinbase recorded a net loss of more than $1.1 billion during the first quarter of 2022 despite a sales reduction of 64% from the prior quarter. Even worse, it had to make the contentious choice to let go of a significant portion of its workforce.
FTX is Building on Bearish Times
To accelerate its global expansion, FTX has so far this year purchased a number of businesses, including the Canadian trading platform Bitvo and the equities clearing platform Embed Financial Technologies.
FTX made an offer to purchase Voyager Digital in July 2022, but the firm declined. The idea, according to its attorneys, was not fair nor advantageous to them.
“It was a very low offer disguised as a white knight’s ransom.”
It is true that Bankman-Fried has often stated his desire to support other cryptocurrency startups, but it is also true that his organization has taken advantage of the present market to purchase several struggling companies.
A deal has been struck between FTX and BlockFi to acquire the Korean cryptocurrency exchange Bithumb for $240 million. This transaction is now under discussion. It also made an attempt to purchase Celsius but soon abandoned the plan.
Given the many acquisitions and bailouts that are being considered, It is difficult to dispute SBF’s assertions. It is also obvious that the exchange is purchasing on the sound of cannons, to use Nathan Rothschild’s phrase.
Contrary to the last section of the financial adagio, it has not yet been sold for a profit.
