FTX opens up a 2-billion dollar venture capital arm to invest in crypto projects

ftx, the cryptocurrency exchange under the direction of the 29-year-old billionaire Sam Bankman-Fried, has announced that it is in crypto projects after the example of the competing Stock Exchange Coinbase and other $ 2 billion.

ftx ventures will invest in start-ups that work in the areas of social affairs, gaming, fintech, software and healthcare. FTX, whose value was estimated by investors to $ 25 billion in October, said that the fund could also invest in token, tradable assets that distribute many cryptocurrency projects to users.

"Our first 2 billion dollar fund will be flexible capital in which we can invest in shares and/or tokens in every check size and phase," said FTX in a blog post. "We measure time horizons in decades. It doesn't matter if they are anonymous. We will not ask you to present yourself before an investment committee."

Investors joined

ftx to invest the billions of dollars to invest in cryptocurrency start-ups. Katie Haun, partner at Andreessen Horowitz, recently conducted discussions about the procurement of at least $ 900 million for two funds for digital assets this month, reported the Financial Times.

Some observers of the cryptocurrency industry have expressed concerns about the overlapping roles of cryptocurrency exchanges that were examined by global regulatory authorities last year.

Bankman-Fried also has Alameda Research, a cryptocurrency trading company that has made 95 investments since 2020. According to PitchBook, FTX made 19 investments, including participation in Sky Mavis, the development team behind the popular cryptocurrency game axie infinity .

Coinbase, the main competitor of FTX in the USA, made more than 200 investments about his venture arm, said the company's managers, which makes it one of the most active company investors in every sector.

ftx based on the Bahamas has developed since its start of business activity three years ago into one of the fastest growing cryptocurrency companies and has developed a popular offshore exchange for cryptocurrency derivatives and a newer market for dealers based in the USA.

Last year

FTX raised at least $ 1.4 billion in funds, including $ 1 billion finance, which it described it as the greatest of all time for a cryptocurrency exchange. Bankman-Fried said in August that the company expected to make profits of around $ 400 million in 2021 after taking around $ 77 million in the previous year.

Amy Wu, a former partner at Lightspeed Venture Partners, came to FTX to head the new fund. In a statement, WU said that the company was "particularly enthusiastic about web3 gaming and its ability to bring the mainstream audience into the ecosystem".

Risk capital providers and start-up founders recently described Web3 as a new version of the Internet based on cryptocurrency technology, although the term triggered counter reactions in some software developers.