Giant FTX’s impressive revenue explosion… On the eve of crypto winter
According to the American media CNBC, the revenue of the cryptocurrency exchange platform increased by 1000% between 2020 and 2021.
After two recent cryptocurrency crashes, some players find themselves in trouble like Celsius and Voyager, others make huge strides. FTX is a bit like the Goldman Sachs of the cryptocurrency world. The platform is a private company, it is not listed on the stock exchange, so apart from partners and shareholders, no one has access to data on its growth. However, according to financial documents consulted by US media outlet CNBC, FTX increased its revenues by 1000% between 2020 and 2021, from $89 million to $1.02 billion.
The group would thus be largely profitable, with an operating profit of $272 million in 2021, up from $14 million a year earlier. Similarly, the company recorded net income of $388 million in 2021 compared to $17 million in 2020. Similarly, in the first quarter alone, the company generated $270 million in revenue and expects revenue of $1.1 billion in 2022. On the other side. , it is not possible to know what impact, at this stage, the two recent crypto crashes have had on the platform’s activity.
Coinbase is losing ground
By comparison, its main competitor, US giant Coinbase, which is much larger with 9 million monthly users (compared to more than 1 million users for FTX according to a January CNBC article), said $7.35 billion in revenue in 2021. But Coinbase has been suffering from cryptocurrency market volatility for some time. The result: In mid-August, the company reported $800 million in revenue for the first quarter of 2022, down 64% from the same period last year. The platform posted a loss of $1.1 billion in the second quarter, compared with a profit of $1.6 billion a year ago.
Will FTX be the winning cryptocurrency exchange in 2022? As we have seen, FTX is looking for any opportunity to acquire other players, especially the struggling ones, who were victims of the June crisis. For example, it positioned itself in early July to buy the BlockFi platform.