Crypto trading platform FalconX confirmed through Twitter that it has successfully raised $50 million in VC funding. The latest funding brings the cumulative total valuation of funding up to $675 million, according to Bloomberg reports. The primary backers are B Capital Group and Tiger Global Management.
Notably, a successful round of funding in late 2020 sparked some considerable interest from AmEx Ventures. In December, the firm threw its hand in the FalconX bowl. AmEx joined an A-list group of investors that comprise Lightspeed Venture Partners and Avon Ventures.
There has been a significant surge in institutional demand for Ethereum and Bitcoin which resulted in massive increases in the prices of these cryptos.
Q4 2020 saw a BTC surge of more than 170% and Etherum gained at least 110%. In the case of FalconX, the price action in the crypto markets spiked its monthly volume above $3 billion. That is strong evidence of long-term sustainability.
FalconX Supports Crypto Adoption
FalconX established itself aiming to repair issues arising within the crypto market:
“For open, permission-less and truly global digital assets to be adopted by mainstream institutions at scale, today’s digital infrastructure is grossly inadequate. FalconX’s mission is to build this connective tissue. Our technology will provide the infrastructure for the future of digital assets and enable seamless price discovery, trade execution, and transfer of value.”
In December 2020, the co-founder and CEO of FalconX, Raghu Yarlagadda, spoke at the Global Investor Conference. During his speech, he broke it down as an institutional trading platform that is currently one of the biggest prime brokers with regards to the volume traded and the number of customers served.
Yarlagadda explained that FalconX is thriving since it answers many important questions. He added:
“A lot of institutions coming into crypto have a lot of questions. These range from what is crypto? How do I get into it? How do I get exposure? FalconX takes care of all these things through its partners. We answer those questions..all the way up to if you’re trading hundreds of millions of dollars a month. We take care of the entire gamut for institutions and we’ve been very fortunate that we’re growing very fast.”
