FTX was among the many crypto exchanges with a front-row seat to witness the crypto hype of 2021, back when Bitcoin (BTC) and other cryptocurrencies hit their all-time highs. Driven by massive customer onboarding, partnerships, sponsorships and other factors, FTX’s revenue reportedly grew 1000% in 2021 — revealed internal documents.
Audited financials of FY 2020-2021 show FTX witnessing a 1000% increase in revenue — growing from $90 million in 2020 to $1.2 billion in 2021, claimed CNBC alleging access to the documents.
The revenue breakdown discloses a 1842.85% increase in operating income for FTX, from $14 million to $272 million in one year. The crypto exchange amassed $388 million in net income, a 2182.35% increase from last year’s $17 million.
FTX has reportedly made $270 million in the first quarter of 2022. However, the exchange’s track record during the crypto winter is yet to be revealed. Despite the stellar first quarter performance, the ongoing crypto winter has most likely impacted the growth trajectory owing to numerous market crashes.
The report further claims that FTX possessed $2.5 billion in cash by the end of 2021 with a profit margin of 27%.
Related: FTX US among 5 companies to receive cease and desist letters from FDIC
Binance CEO Changpeng ‘CZ’ Zhao recently raised concerns about jitters, a phenomenon wherein an existing trade order gets postponed to allow the completion of newer trades.
Just learned a new word, jitters. On 1 particular exchange, sometimes your orders will be stuck for a bit, and a few other orders will get in front of you. Apparently, this happens often enough on this exchange that the traders coined a term for it, jitters. (Front running)
— CZ Binance (@cz_binance) August 19, 2022
While CZ did not explicitly target any particular exchange during the discussion, the crypto community on Twitter assumed it was aimed at FTX. “All of you guys knew and didn’t say anything. We need to fight the bad players,” he added.