26 August 2020 12:45

Following the FTX acquisition, Blockfolio plans to launch a retail trading experience powered by the cryptocurrency exchange.

$150 million deal: FTX acquires Blockfolio in bid to expand retail footprint

Hong Kong-based cryptocurrency derivatives exchange FTX today announced the acquisition of cryptocurrency portfolio tracker Blockfolio for $150 million. FTX plans to collaborate with Blockfolio on a retail trading application, which it hopes to launch this fall. This is one of the largest crypto acquisitions. Binance's acquisition of metrics site CoinMarketCap was rumored to be over $400 million. FTX is a cryptocurrency exchange focused on derivatives.

It reportedly oversees $750 million in trades per day. Rather than directly buying and selling Bitcoin itself, derivatives traders swap things like futures and options contracts. FTX also mints leveraged tokens, which are so complex that Binance delisted them because its users "don't understand them." Blockfolio's portfolio tracker gives its users a broad overview of the direction of the cryptocurrency market, taking price feeds of all the major cryptocurrencies from hundreds of cryptocurrency exchanges. The firm has raised more than $17 million since its launch in 2014. In its purchase of Blockfolio, FTX sees "a chance to bring its powerful trading suite and industry-leading liquidity to a new audience," according to its press statement.

"We believe crypto is on the cusp of mainstream adoption," said Ed Moncada, co-founder and CEO of Blockfolio. "So we're thrilled by the potential of uniting one of the best product teams in our industry with what we are convinced is the best exchange in the space." FTX is already planning to launch a decentralized exchange (DEX), Serum, soon. It relies on the Solana blockchain, which claims to be able to process 50,000 transactions per second. (The Ethereum blockchain, in comparison, can process about 13). FTX told Decrypt that the project is not related to the retail product it is building with Blockfolio.

The cryptocurrency derivatives exchange FTX has purchased one of the most utilized cryptocurrency applications – Blockfolio for $150 million. As a result, Blockfolio will add a retail trading experience for its over 6 million users. FTX Buys Blockfolio After recently launching a DEX focused on DeFi trading called Serum, FTX continues expanding, acquiring the popular app for $150 million. The consumer application, which has been downloaded over 6 million times on iOS and Android, previously raised $17 million from Founders Fund, Pantera Capital, Dan Matuszewski, DCM Ventures, Hashkey Digital Asset Group, and others. Blockfolio allows users to add a portfolio of cryptocurrencies and track their performance. Additionally, users can have a so-called automatic portfolio by connecting the app with different exchanges. Following the FTX acquisition, Blockfolio plans to launch a retail trading experience powered by the cryptocurrency exchange. Although neither company disclosed further details about it at the time, Blockfolio allows pre-registrations as the project will "launch soon." However, Blockfolio reassured its current users that it will "continue to operate as an independent app, and nothing has changed about how seriously we take your data and privacy. In the app, you will still be able to import data from whichever exchanges you prefer to use." FTX Founder and CEO Sam Bankman-Fried said he looks forward to working with the Blockfolio team and user base. Blockfolio added that the cryptocurrency field is set to experience a massive popularity boost and attract more users. Therefore, the deal with FTX will allow the company to create "endless possibilities" for its users. Founded in 2019, FTX is among the youngest cryptocurrency exchanges, but it's growing relatively quickly, especially after the strategic partnership with the leading digital asset platform – Binance. The two exchanges announced the news in December 2019, which read that Binance had "taken a long-term position in the FTX Token," while FTX was responsible for building out the liquidity and institutional product offerings. Binance CEO Changpeng Zhao noted at the time that having a team with backgrounds as professional traders could make it entirely possible for FTX to take a more substantial market share. Interestingly, that's precisely what has happened since then as the exchange has become the 7th largest cryptocurrency platform in terms of overall trading volume.