Crypto Exchange FTX Buys Blockfolio for $150 Million in Effort To Expand Retail Presence
Cryptocurrency derivatives exchange FTX has acquired the popular portfolio tracking app Blockfolio for $150 million in a bid to gain a foothold in the crypto retail market.
The deal – consummated after nine months of negotiation – was settled using a combination of cash, crypto, and stock, both companies detailed. It is one of the biggest acquisitions in the digital asset industry’s short history.
According to a blog post published Aug. 26, the firms are currently working on a retail trading application that is expected to fit into Blockfolio’s existing product offering. The newest app will be released anytime from September. The companies did not provide further details about the planned feature.
For Hong Kong-based FTX, the plan is to expand into the retail market by leveraging Blockfolio’s popularity. The app, which boasts six million users and 150 million page views each month, allows retail traders to track crypto prices and monitor their portfolios in real-time. More than 600 exchangers utilize Blockfolio’s tools to communicate with their customers.
Launched in 2019, FTX provides a suite of crypto derivatives trading products such as futures and options contracts. The exchange reportedly manages $750 million of trading volume per day. FTX is also planning to launch a decentralized exchange (DEX) called Serum on the Solana blockchain soon. Blockfolio is targeting to tap into this market.
Ed Moncada, chief executive officer and co-founder of Blockfolio, was quoted by industry media as saying:
We believe crypto is on the cusp of mainstream adoption. So we are thrilled with the potential of uniting one of the best product teams in our industry with what we are convinced is the best exchange in the space.
In a press statement, FTX said the acquisition of Blockfolio represents “a chance to bring its powerful trading suite and industry-leading liquidity to a new audience.”
The exchange’s CEO Sam Bankman-Fried added: “The goal here is to be able to offer the best product that can leverage the loyal following that Ed has built out. That means giving access to Blockfolio to all of the entities we have and for each user, hooking them up with what fits them.”
The FTX-Blockfolio deal ranks among the largest mergers and acquisitions within the crypto industry. It is smaller than Binance’s reported $400 million purchase of Coinmarketcap as well as the $350 million merger of Lightyear and Chan, which led to the founding of Interstellar. However, it is bigger than the Tron Foundation’s $125 million acquisition of Bit Torrent.
What do you think about FTX’s acquisition of Blockfolio? Let us know in the comment section below.
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