FTX’s operating income increased by 1842.85% in FY 2020–21, from $14 million to $272 million according to the revenue summary.
FTX was one of the several crypto exchanges that had a first mover advantage to the euphoria surrounding cryptocurrencies when Bitcoin (BTC) and other cryptocurrencies reached their all-time highs in 2021.
FTX’s revenue reportedly increased by 1000% in 2021 as a result of extensive client onboarding, partnerships, sponsorships, and other reasons according to recently leaked internal papers.
According to CNBC, who claimed access to the data, the audited financials for FY 2020–2021 show FTX experiencing a 1000% increase in revenue, rising from $90 million in 2020 to $1.2 billion in 2021.
The revenue breakdown shows that FTX’s operating income increased by 1842.85% in a single year, going from $14 million to $272 million. The cryptocurrency exchange generated $388 million in net profits, a 2182.35 percent rise from $17 million the previous year.
In the first quarter of 2022, FTX reportedly made $270 million. The exchange’s performance during the crypto winter has not yet been made public. Despite the outstanding first quarter results, the prolonged crypto winter and its repeated market collapses have certainly had an influence on the growth trajectory.
In addition, the study asserts that FTX had a profit margin of 27% and $2.5 billion in cash at the end of 2021.
Changpeng “CZ” Zhao, the CEO of Binance, recently expressed concern over jitters, a phenomenon where a trade order is delayed to facilitate the completion of a fresher trade.
The crypto community on Twitter assumed CZ was targeting FTX even though he didn’t specifically name any exchange throughout the discussion. He added that “We need to fight the bad players,” in a follow up reply.
Sam Bankman-Fried, the founder of FTX, denied claims CZ had his exchange in thought, but he received a swift rebuttal from an FTX user who revealed his testimony of how the FTX user interface cost him more than half of his trading account as a result of orders not being honored.
FTX was founded in 2019 after the boom hit and has been growing far, far more quickly than most other reputable exchanges. By the numbers, FTX has raised $1.7 billion in seven venture capital rounds from 47 investors. FTX US raised $400 million in one round this year at an $8 billion valuation.