US-based cryptocurrency platform FalconX closed a $150 million fundraiser led by investment giants – GIC and B Capital, and its valuation rose to $8 billion.
Despite the accident, FalconX continues to make progress
In a recent interview with Reuters, FalconX founder and CEO Raghu Yarlagadda said his company’s valuation was less than $4 billion 10 months ago. However, numerous funding rounds, including the latest for $150 million, had a positive impact, and now the total valuation of the trading venue has risen to $8 billion.
Yarlagadda stated that the fresh capital will be distributed in new acquisitions, data analysis and technology. The firm also intends to expand its services to clients in the credit and prime brokerage and trading sectors.
In addition to GIC and B Capital, which led the funding, other notable investors included Thoma Bravo, Tiger Global Management, Adams Street Partners and Wellington Management.
Unlike many other exchanges, such as CryptoCom and Coinbase, FalconX plans to expand its team with more people. Specifically, it is willing to incorporate 55 additional employees, which would mean a 30% increase in the total workforce.
“Over the next 12 to 18 months, we expect a very volatile market. And given that volatility, we see very strong acquisition opportunities,” explained the CEO.
Earlier this month, the world’s largest cryptocurrency exchange Binance revealed similar intentions. CEO Changpeng Zhao argued that the current bear market is the perfect time when his company can welcome new people. A few days later he duplicate on ambitions revealing that Binance is looking to strengthen its team with 2,000 people.
Exchanges are going through tough times
It is worth mentioning that the decline of the cryptocurrency market has negatively affected many of the leading platforms.
For one thing, Coinbase said it will have to reduce the size of its team by 18%. The head of the trading center, Brian Armstrong, explained the decision with the recession that is likely to affect the world economy in the coming months:
“It seems that we are entering a recession after an economic boom of more than 10 years.”
CryptoCom and Bybit are other examples of platforms that will lay off some of their employees. The former will lay off 260 people (or 5% of its staff), while the latter did not reveal an exact number.
However, a Bybit spokesperson assured that the affected people will receive certain compensation and support with their job transitions.
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This post FalconX Crypto Firm Valued at $8 Billion After New Fundraiser
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