Cryptocurrency exchange FTX recently acquired a popular portfolio tracking app Blockfolio. The exchange offers derivatives, options, and other products to users.
A $150 million deal
FTX spent $150 million to acquire Blockfolio, in a combination of cash, cryptocurrency, and stock. Note that the stock and cryptocurrency reserves may not be completely liquid. While Blockfolio fits perfectly in the FTX agenda, the two apps have a completely different audience. The exchange is designed for professional traders and allows then access to the futures markets. It also offers ERC-20 tokens that will track the vitality of the largest cryptocurrency Bitcoin.
On the other hand, Blockfolio is a consumer app which has been downloaded over 6 million times on both Android and iOS. The startup raised $17 million in funding from Pantera Capital, Founders Fund, Dan Matuszweski, Hashkey Digital Asset Group, and DCM Ventures.
What does Blockfolio do?
Blockfolio lets users add their cryptocurrencies to a portfolio and track their value over a period of time. The app will also allow users to view the market moves of a token by searching for it in the app. The portfolio tracking can also be automated by connecting the app to an exchange account.
With the new acquisition, FTX aims to launch a simpler trading experience for its retail customers. The teams of both companies have already started working together on a trading product branded with Blockfolio. If FTX is able to take advantage of the userbase of Blockfolio, then it could bring some big advantage in terms of liquidity.
The Blockfolio acquisition is one of the largest in crypto history after Binance’s acquisition of CoinMarketCap which was rumored to be worth upwards of $400 million. FTX brings in a volume of $750 million in trades every day. FTX was in news earlier because Binance delisted its tokens. The exchange said that the tokens from FTX were so complex that its traders didn’t understand them.