FTX Revenue Soared By 1000% In 2021’s Market Boom: Report
- The revenue of FTX crypto exchange surged by 1000% in 2021 breaking all the previously registered records for the exchange.
- The exchange brought in $270 million in revenue in the first quarter of 2022, while in the same period rival crypto exchange Coinbase suffered significant losses.
One of the biggest cryptocurrency exchanges in the world, FTX, had seen a huge surge in revenue in the year 2021 during the crypto market boom wherein many institutions as well as individuals invested their money in the exploding space of blockchain and crypto industry.
A report from CNBC claims that the revenue of the crypto exchange surged by 1000% in 2021 breaking all the previously registered records for the exchange. As per the undisclosed audit financials seen by the officials of the new outlet, the exchange’s revenue for last year was a billion dollars, making it one of the most profitable firms post-Covid.
The audited financial documents give an insight into the privately held company’s finances. Overall, it is clear that in 2021, FTX was profitable, quickly expanding across the globe and saw breakneck growth. The revenue generated by the crypto exchange soared by almost 1,000% from $89 million to $1.02 billion in 2021, marking a significant growth for the exchange.
However, once the revenue increases, so does the operational costs of a business and other expenses as well. Operating income was $272 million, up from $14 million a year earlier. FTX saw net income of $388 million last year, up from just $17 million a year earlier.
The crypto exchange has also made significant gains this year raking in $270 million in revenue in the first quarter of 2022, while in the same period rival crypto exchange Coinbase suffered significant losses. In the second quarter of 2022, there was no data revealed but according to an investor deck shared with CNBC, the company was on track to do roughly $1.1 billion in revenue in 2022.
However, it remains unclear how the FTX exchange plans to remain profitable amid a bearish drop in the prices of all the cryptocurrencies including Bitcoin and Ether. Wall Street quant trader Sam Bankman-Fried founded FTX in 2019 and since then the firm has come a long way. The exchange went to capitalize on the stock trading industry and introduced the same for US investors as well.
FTX also recently partnered with investment firm Paradigm to launch crypto futures spread trading services. However, despite its efforts to grow in the bearish market condition, the exchange recently came under the crosshairs of the Federal Deposit Insurance Corporation (FDIC) issued a cease-and-desist warning to the United States division of the renowned crypto exchange platform FTX, FTX.US.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
