The US-based cryptocurrency platform FalconX closed a $150 million fundraiser led by the investment giants – GIC and B Capital, and its valuation surged to $8 billion.
FalconX Continues to Progress Despite the Crash
In a recent interview for Reuters, FalconX’s Founder and CEO – Raghu Yarlagadda- said his company’s valuation was less than $4 billion 10 months ago. The numerous funding rounds, including the latest for $150 million, though, had a positive impact, and now the trading venue’s total valuation has grown to $8 billion.
Yarlagadda said that the capital would be used for new acquisitions and data analytics. The firm intends to provide more services to clients in trading and credit, prime brokerage, as well as trading.
GIC and B Capital led the financing. Other prominent investors were Thoma Bravo (tiger global management), Adams Street Partners, Wellington Management and Wellington Management.
FalconX plans on expanding its team, which is unlike many other exchanges such as CryptoCom or Coinbase. FalconX is seeking to hire 55 additional employees which would mean a 30% increase of the total workforce.
“Over the next 12 to 18 months, we do expect a very volatile market. And given that volatility, we see very strong opportunities for acquisition,” the CEO explained.
Earlier this month, the world’s largest cryptocurrency exchange – Binance – revealed similar intentions. Changpeng Zhao, the CEO, said that the current bear market was the ideal time to allow his company to accept new customers. A few days later, he doubled downBinance’s ambitions were revealed by the fact that it is seeking to add 2,000 employees to its team.
Tough Times for Exchanges
It is important to mention that many of the top platforms have been negatively affected by the fall of cryptocurrency markets.
Coinbase announced that it would have to cut its team by 18%. The head of the trading venue – Brian Armstrong – explained the decision with the recession that is likely to hit the global economy in the following months:
“We appear to be entering a recession after a 10+ year economic boom.”
CryptoCom and Bybit, two other platforms that have laid off some employees, are Bybit and CryptoCom. While the former company will lay off 260 employees (or 5%), the latter didn’t disclose an exact number.
A spokesperson for Bybit stated that affected workers will be compensated and offered support during job transitions.