FTX was one of the cryptocurrency exchanges which saw the cryptocurrency hype of 2021, at the time when Bitcoin (BTC) and other cryptocurrencies hit their all-time highs. Powered by factors such as customer onboarding, partnerships, sponsorships, among others, FTX’s revenue reportedly saw a 1000% growth in 2021 as stated by internal documents, according to Cointelegraph.
As reported by Cointelegraph, audited financial statements for FY2020-21 showed FTX sustaining a 1,000% growth in revenue, growing from $90 million in 2020 to $1.2 billion in 2021, claimed CNBC alleging access to the documents. The revenue tally showed a 1,842.85% increase in operating income for FTX, from $14 million to $272 million in a year’s time. FTX secured $388 million in net income, a 2,182.35% increase from previous year’s $17 million. Reportedly, FTX made $270 million in Q1, 2022. However, the cryptocurrency exchange’s performance during crypto winter is yet to be revealed. The report showed that FTX made $2.5 billion in cash by the end of 2021, with a profit margin of 27%. FTX didn’t respond to Cointelegraph’s request for a comment on the matter.
On the basis of information by Cointelegraph, Changpeng Zhao, CEO, Binance, raised concerns on the term jitters, which refers to a phenomenon of an existing trade order getting postponed to ensure the completion of recent trades. While Zhao’s comments wasn’t held under the impression of targeting any particular exchange during the particular discussion, Twitter’s cryptocurrency community made assumptions about the comments being aimed at FTX. “All of you guys knew and didn’t say anything. We need to fight the bad players,” he added.
According to FTX’s official website, it is Bahamian cryptocurrency exchange, which was incorporated in Antigua and Barbuda. In February, 2022, the cryptocurrency exchange averaged a daily trading volume of $10 billion.
(With insights from Cointelegraph)
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