FTX's third anniversary has continued to expand, what milestones have been achieved?
If you vote for the most eye-catching crypto startup in 2021 or 2022, then FTX must be the MVP of many people. Since relocating its headquarters to the Bahamas, FTX is expanding its global scale in a "compliant manner". While acquiring other companies, it is also cooperating with brands in the sports field and well-known athletes to build brand influence.
FTX recently released3rd Anniversary Video, there are a lot of stars in the video, and many celebrities have offered their blessings to FTX.
For example, well-known artists such as Huang Zijiao, Zhou Tanghao, Chen Lingjiu, Li Yuxi, Wang Sijia, politicians, city councilors Qin Huizhu and Huang Jingping.
There are also athletes from different fields around the world, including NFL draft pick Trevor Lawrence, MLB Hall of Famer David Ortiz, four-time women's singles champion tennis player Naomi Osaka, and NBA legendary center O'Neal.
Only three years after its establishment, FTX is now the top three crypto exchanges in the world. According to CNBC, FTX will generate $1.02 billion in revenue in 2021, a 1,000% increase from the previous year.
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FTX is the FTX of the world
In September 2021, FTX will relocate the exchange headquarters to the Bahamas. At the end of the month, FTX announced that it had obtained a regulatory license in the Bahamas. FTX realized early on that as cryptocurrencies entered the mainstream, regulation would be a major consideration for expansion.
In addition to the already deployed FTX US, FTX currently has established compliance exchanges in regulatory regions such as Europe, Australia, and Japan.
The expansion map of FTX is organized in chronological order as follows:
FTX Europe: In March 2022, FTX obtained the regulatory license from the Cyprus Exchange Commission (CySEC), established FTX Europe through a licensed investment institution in the Eurozone, and began to provide encrypted derivatives services to European users.
FTX Australia: At the end of March 2022, FTX obtained a financial services license in Australia and established FTX Australia to provide encrypted derivatives services, including futures contracts, option contracts, leveraged tokens, and contracts for difference (CFD) of encrypted assets to Australia resident.
FTX Japan: In June 2022, FTX was registered in Japan as a Type 1 financial instrument business under the Financial Instruments and Exchange Act, and FTX Japan was established to provide spot transactions and perpetual contracts. It also supports legal currency services, allowing users to quickly withdraw , Deposit in Japanese Yen.
Acquisition of Bitvo in Canada: In June 2022, FTX will acquire Bitvo (Bitvo, Inc.), a Canadian crypto asset trading platform. The exchange is regulated under the Securities and Exchange Act and is registered with FINTRAC as a currency provider. The acquisition also allows FTX to offer compliant products to Canadian users.
FTX Exchange FZE: FZE is actually a subsidiary of FTX Europe. It was licensed by the Dubai Virtual Assets Regulatory Authority (VARA) at the end of July 2022 to provide spot and derivatives exchange services for qualified institutional investors in the United Arab Emirates.
Including FTX US, FTX is currently able to provide encrypted spot and derivatives transactions in compliance with regulations in the United States, the Eurozone, Australia, Japan, Canada, and the United Arab Emirates.
Not only that, FTX founder SBF also hinted at entering Latin America in an interview with Bloomberg in July, and is currently evaluating the regulatory situation in Brazil and Mexico.
On the other hand, Vident, the largest shareholder of the South Korean encryption exchange Bithumb, revealed that it is in contact with FTX to discuss the sale of shares. Vident said that it may be that FTX acquired Bithumb or that FTX purchased a large amount of equity and obtained part of the management rights.
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With the launch of stock trading in the US, will crypto derivatives be the next step?
Among all regulatory regions, U.S. regulation is definitely a global indicator. In addition to complexity and rigor, it is also a global leading indicator. Due to regional factors, except for Coinbase, almost all exchanges have encountered many problems in expanding to the United States. However, FTX has made a major breakthrough this year, and even surpassed Coinbase in terms of spot trading market share and product diversity.
FTX US is a compliant exchange launched by FTX in the United States. At the beginning, it only provided "spot trading". However, after FTX US acquired LedgerX and Embed, FTX US has begun to provide "US stock trading" to US users, and even We are discussing with CFTC (US Futures Trading Commission) to launch encrypted derivatives.
The LedgerX and Embed acquisitions are crucial.
LedgerX was originally a US-compliant "derivatives exchange" with three CFTC regulatory licenses: DCM (Designated Contract Market), SEC (Swap Execution), and DCO (Derivatives Clearing Organization). Embed Financial is a compliant securities broker, responsible for securities custody, trade execution, clearing, and it is also a member of FINRA, the financial regulatory authority.
With two acquisitions, FTX US officially launched FTX Stocks at the end of July 2022, and began to provide US users with trading services for thousands of US-listed securities, including general stocks and ETFs.
On the other hand, FTX is also proposing with CFTC to use "full margin" to replace traditional futures commission merchants (FCM). The system will calculate the margin positions on a rolling basis with 30 seconds as the time unit. If the margin ratio drops too low, FTX will begin liquidating user positions within seconds. The worst plan is to sell the position to the liquidity provider for the "agreed amount".
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After entering the bear market, FTX has also continued to gain
After the thunder of TerraUSD, Celsuis, and Sanjian Capital, the crypto market ushered in a big liquidation. FTX has assisted some crypto startups. In addition to preventing the crisis from spreading, SBF has also won the reputation of "the borrower of last resort in the crypto market".
FTX provided Voyager Digital with $480 million and BlockFi with a $640 million revolving line of credit.
Among them, FTX US provided BlockFi with a total of 640 million US dollars in loans, of which 240 million can be converted into BlockFi equity, which means that FTX can expand its business to the field of encrypted lending in the future.
On the other hand, FTX has also continued to sign brand spokespersons in various fields, including NBA star Stephen Curry, legendary quarterback Tom Brady, Brazilian supermodel Gisele Bündchen, MLB Hall of Famer David Ortiz and so on.
According to previous statements by SBF, these collaborations are intended to build FTX's brand value. He believes that sports are one of the few fields without borders. Cooperating with these athletes or teams can help the public quickly understand FTX and know the core purpose of FTX.
