The Blockfolio deal will enable FTX to launch a product aimed at retail traders. The companies are already working on a joint project, the functionality of which has not yet been disclosed.
Crypto derivatives platform FTX announced the acquisition of Blockfolio, a digital asset portfolio management service. FTX spent $150 million on this deal, which was paid out partly in fiat and partly in digital currencies and stocks.
The FTX platform targets mainly professional traders as it offers a wide range of crypto-derivative products, including even Bitcoin hashrate futures contracts. The Blockfolio acquisition will enable it to launch a product aimed at retail customers.
Blockfolio is one of the most popular trackers on the market. According to the company’s own data, its application has been downloaded more than 6 million times, and the proposed tools are used on average more than 150 million times a month.
The companies are already working on a project that will be launched under the Blockfolio brand. Its functionality has not been disclosed, however, users can already pre-register in order to get access to the new application as soon as possible and participate in giveaways.
“We believe that the cryptocurrency industry is close to becoming mainstream. Therefore, we are delighted to be able to join the efforts of one of the best development teams with a platform that we believe is the best exchange on the market”, said Blockfolio co-founder and CEO Ed Moncada.
In its blog, Blockfolio emphasizes that the portfolio tracker will continue to operate as a standalone app. Its users still have the ability to import data from any site they prefer to work with.
According to Coindesk, the companies began discussing a joint product for retail traders nine months ago. Ultimately, the discussions over the project turned into merger negotiations. Throughout the transaction, Blockfolio was advised by the Spartan Group and Mike Novogratz’s crypto bank Galaxy Digital.
The FTX platform was founded in the spring of 2019. Sam Backman-Fried, founder and head of Alameda Research, is behind the project. It is worth noting that the Binance cryptocurrency exchange is one of the FTX shareholders.