US-based cryptocurrency platform FalconX completed a $150 million fundraiser led by investment giants GIC and B Capital, taking its valuation to $8 billion.
Despite the crash, FalconX continues to make progress
In a recent interview for Reuters, FalconX founder and CEO Raghu Yarlagadda said his company’s valuation was less than $4 billion 10 months ago. However, the numerous rounds of funding, including the most recent one of over $150 million, have had a positive impact and now the overall valuation of the exchange has grown to $8 billion.
Yarlagadda assured that the fresh capital will flow into new acquisitions, data analysis and technology. The company 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 financing, other prominent 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. In concrete terms, they are willing to hire 55 additional employees, which would correspond to a 30% increase in the total workforce.
“We expect the market to be very volatile over the next 12 to 18 months. And given this volatility, we see very good acquisition opportunities,” said 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 for his company to welcome new hires. A few days later, he doubled down on his ambitions and announced that Binance wants to strengthen its team of 2,000 people.
Stock markets in difficult times
It is worth noting that the decline of the cryptocurrency market has negatively impacted many of the leading platforms.
For one, Coinbase said it needs to reduce the size of its team by 18%. The head of the trading floor – Brian Armstrong – justified the decision with the recession that is expected to hit the global economy in the following months:
“After an economic boom of over 10 years, we seem to be entering a recession.”
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 workforce), while the latter did not disclose an exact figure.
However, a spokesman for Bybit assured that those affected would receive certain compensation and support with their job change.
Source: Crypto News Deutsch