Sam Bankman-Fried-led FTX is continuing to acquire and expand in the crypto space, with reports emerging that the exchange is in talks to acquire Bithumb. The exchange has also backed a slew of crypto firms, including the likes of Voyager Digital and BlockFi.
FTX’s Bithumb Acquisition
According to several reports, FTX is in talks to acquire South Korea’s second-largest exchange, Bithumb. The companies have reportedly been in talks for the past few months, sources close to the matter revealed. The source declined to come on record due to the confidential nature of the dealings. While FTX has not commented on the matter so far, A spokesperson from Bithumb stated that they could not comment on anything at this stage.
While there is no official confirmation, if the deal is successful, the Sam Bankman-Fried-led exchange could gain a strong foothold in one of the most important markets in the crypto ecosystem.
An Acquisition Spree
Sam Bankman-Fried, in an earlier interview, had stated that he plans to spend billions on the acquisition of other firms in the crypto space. The crypto exchange is reportedly looking to raise further funds after spending significantly during the bear market. The company had carried out significant acquisitions and bailouts, which were a result of the bear market spawned by the collapse of the UST.
Both FTX and FTX.US are looking to raise funds at the same $32 billion valuation that was made in January 2022 for the primary platform and $8 billion for its American subsidy. Both arms of the exchange have already raised $400 million each.
Will Continue To Support Struggling Projects
Sam Bankman-Fried also revealed that FTX had set aside a few billion dollars to continue supporting crypto projects if their collapse could have a significant impact and destabilize the crypto industry. However, he stated that he believed the worst of the liquidity crunch and bear market was over and that things could get better from here on.
He also stated that he believed the current crypto downturn is good for the industry in the long term since it has eliminated the majority of leverage in the industry.
“I think what we’ve seen so far might be healthy. You know to the extent that what it is doing is flushing out some of the leverage that had to get flushed out. Flushing out some of the players that just were not capitalized well enough, you know. I think that could ultimately end up being moderately healthy for markets.”
Bithumb’s Market Share in South Korea
Upbit dominates the crypto market in South Korea. However, Bithumb is in a relatively strong position, holding the second largest market share among crypto exchanges in the country at 13%. The exchange was founded in 2014, has a daily trading volume of $569 million, and supports over 188 coins and 290 trading pairs.
However, Bithumb’s executives are also facing criminal charges for fraud to the tune of 100 billion won. The lawsuit resulted in the indictment of several company executives, including the exchange owner.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
