Crypto exchange FTX expands into retail with acquisition of Blockfolio
FTX and Blockfolio are developing an app for cryptocurrency trading that will be targeting retail investors.
FTX, the cryptocurrency exchange known for offering sophisticated products such as crypto derivatives and options, is planning to expand its clientele to include those from the retail market. The firm recently acquired Blockfolio, a portfolio tracking app popular among retail investors.
FTX acquired Blockfolio for $150 million and is said to be one of the biggest acquisitions in the digital asset industry, according to Bitcoin.com. The deal was finalized after nine months of negotiation. FTX settled its acquisition using a combination of stock, crypto, and cash.
FTX’s move to purchase Blockfolio signals its intention to enter the retail end of the industry. “Blockfolio is thrilled to announce that we’re joining forces with FTX,” Blockfolio announced in a blog post. “As part of that announcement, we’re also excited to share that later this year, we’ll be launching a retail trading experience.”
The Hong Kong-based FTX is known for offering sophisticated cryptocurrency products such as derivatives and options. This makes the crypto exchange platform it better positioned for professional traders as it even lets users trade on futures markets and also offers ERC-20 tokens, according to Tech Crunch.
Blockfolio, on the other hand, is geared towards the retail end of the crypto market. It is a very popular app with more than 6 million downloads on iOS and Android. By adding the specific cryptocurrencies they own, the app allows users can track the value of their cryptocurrency portfolio. The tracking feature can also be automated by connecting the app to a user’s exchange account.
Both firms are currently developing a retail trading app that would be a better fit with Blockfolio’s existing users. Not much is known about the application at the moment but the company hinted that it would likely be released by September this year.
“Later this fall, Blockfolio will be launching a retail trading experience, powered by FTX,” Blockfolio wrote. “We’re not ready to share too much more at this time, but we are hard at work, heads down, and absolutely can’t wait to unleash this thing soon.”
The acquisition won’t affect existing users of the app. “Blockfolio will continue to operate as an independent app, and nothing has changed about how seriously we take your data and privacy,” the company said. “In the app, you’ll still be able to import data from whichever exchanges you prefer to use.”
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