Crypto Derivatives Platform FTX Raises $8 Million in Seed Round

Cryptocurrency derivative platform FTX on Tuesday has announced that it raised $8 million in its seed funding round.

The crypto startup attracted major investors in the industry including venture capital Proof-of-Capital, Consensus Lab, crypto asset management firm FBG, and Galois Capital, a crypto hedge fund.

Commenting on the fresh funds, Sam Bankman-Fried, co-founder and CEO of FTX, said: “I’m personally very passionate about trading, so FTX is a platform built by traders, for traders. In creating FTX, I wanted to build a platform for professional traders like me, while also bringing crypto trading to the mass market and first-time users.”

Founded by a team of Wall Street and Silicon Valley veterans, the derivative platform was incubated by Alameda Research. The founding members of the platform have in-hand experience with trading and their new crypto platform is offering services like futures trading, leveraged tokens, and over-the-counter (OTC) services.

The platform offers quarterly and perpetual futures instruments on major cryptocurrencies including Bitcoin, Ether, Binance Coin, and Tether. Its OTC service also trading facility with 20 digital assets and offers instant settlements with zero fees.

According to the firm, it has crossed $300 million in total trading volume and has included services and features like spot trading and altcoin index futures.

Venture capitals focusing on blockchain

Launched earlier this year, Proof-of-Capital entirely focuses on early-stage blockchain companies. The fund also closed a $50 million funding round in April and partnered with HTC to allow its portfolio companies to work with the consumer electronics manufacturer and develop products for its blockchain-enabled smartphone.

“I am thrilled to partner with Sam and his team. His love for trading really shows in their product and Proof of Capital is honored to help the company go to market in Asia.” Chris McCann, a managing partner at Proof-of-Capital, added.

Meanwhile, crypto lending platform BlockFi recently closed its Series A funding round after securing $18.3 million.