FTX was one of the many cryptocurrency exchanges with a front row seat to witness the cryptocurrency boom in 2021, when Bitcoin (BTC) and other cryptocurrencies hit their all-time highs.. Driven by massive customer onboarding, partnerships, sponsorships and other factors, FTX revenue reportedly grew 1,000% in 2021 – internal documents revealed.
Fiscal year 2020-2021 audited financial statements show FTX witnessed a 1,000% increase in revenuegoing from $90 million in 2020 to $1.2 billion in 2021, CNBC claimed, claiming access to the documents.
Revenue breakdown reveals a 1842.85% increase in FTX operating income from $14 million to $272 million in one year. The cryptocurrency exchange made $388 million in net income, an increase of 2,182.35% from $17 million last year.
FTX has reportedly made $270 million in the first quarter of 2022. However, the trajectory of the exchange during the crypto winter is yet to be revealed. Despite stellar first quarter performance, the ongoing crypto winter has most likely affected the growth trajectory due to numerous market crashes.
The report further states that FTX held $2.5 billion in cash at the end of 2021 with a 27% profit margin.
FTX has not yet responded to Cointelegraph’s request for comment.
Binance CEO Changpeng ‘CZ’ Zhao recently raised concerns about jittersa phenomenon where an existing trade order is postponed to allow new trades to take place.
Just learned a new word, jitters. On 1 particular exchange, sometimes your orders will be stuck for a bit, and a few other orders will get in front of you. Apparently, this happens often enough on this exchange that the traders coined a term for it, jitters. (Front running)
— CZ Binance (@cz_binance) August 19, 2022
I just learned a new word, “jitters”. On a particular exchange, sometimes your orders get stuck for a while, and other orders get ahead. Apparently this happens often enough on this exchange that traders have coined a term for it, “jitters”. (Front running)
Although CZ did not explicitly target any particular exchange during the discussion, it was assumed by the cryptocurrency community on Twitter that it was targeting FTX. “You all knew and didn’t say anything. We have to fight bad actors,” he added.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.