FTX’s token FTT surged 12% after the latest $900 million investment from Sequoia Capital, Coinbase Ventures, and PAradigm as we can see more in our latest cryptocurrency news today.
Hong Kong-based exchange FTX is now valued at $18 billion after earning $900 million in the latest raise. The funds will be used for various mergers and acquisitions which is something that Sam Bankman-Friend the CEO of the exchange is too familiar with. The exchange announced a 19-year $135 million deal with the Miami Heat NBA Franchise which will include renaming the basketball team’s stadium to the FTX Arena and then in June, FTX made two more deals with the biggest esports team TSM for $210 million as well as becoming the official crypto sponsor of MLB.
— FTX – Built By Traders, For Traders (@FTX_Official) July 20, 2021
Bankman-Friend has to declare any new and multi-million dollar deals but it has its eyes set on traditional finance. The CEO was cited as acquiring Goldman Sachs but this example was an extreme one. Instead, he wants to focus on the acquisition that will help grow the FTX services and users. Despite the speculation about the next move of the exchange, the FTX’s token FTT surged 12% after the news a day ago.
FTT is FTX’s native cryptocurrency that can be used to enjoy additional advantages when trading and interacting with the exchange. For example, if you hold $100 worth of FTT you can enjoy a 3% discount on its trading fees. The exchange offers a staking service which when used, comes with a host of other bonuses like free NFTs, airdrops, higher referral rates when you invite other traders to join in. At press time, the token is trading hands at under $27.00 which is still down 57.3% from its ATH in the month. Its fully diluted valuation as the metric of determining the total value of the tokens in circulation is a little more than $9 billion. At half the valuation of the company, the difference serves as a reminder that equity and tokens are not the same things.
As reported recently, FTX is paying $210 million in 10 years for naming rights for popular esports organization Team SoloMid but the team cannot use the TSM FTX branding within the game League of Legends or VALORANT because of Riot Games restrictions. The crypto exchange FTX’s Esports deal turns out to be less valuable than it really is and since the initial news broke, the new wrinkle emerged and makes the deal less valuable than it seems on the surface.
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