Blockfolio is off the table, providing the second and final opportunity to exchange cryptocurrencies to add millions of existing retail users to its ecosystem.
After Binance acquired CoinMarketCap (CMC) earlier this year, cryptocurrency industry forecasters identified the most popular portfolio management app in the retail market as a potential target for the next mega-retail store in the sector.
FTX, which only launched in 2019, has shown its willingness to pay $ 150 million for Blockfolio’s 6 million users as the exchange looks to fuel its rapid growth.
“We are at the beginning of a bull market that will bring more new users into the room,” Ed Moncada, co-founder and CEO of Blockfolio, told Cointelegraph.
“After that deal everyone picked up the phone,” he continued. “But when it comes to aligning our missions that are so focused on the best user experience, there is no exchange that is as quick or thoughtful as the team at FTX.”
Regarding a “new trading experience” that is currently under development, said Sam Bankman-Fried, Co-Founder and CEO of FTX, “Our goal at FTX has been to provide the best quality trading experiences with the deepest liquidity for develop the largest possible segment of dealers. Blockfolio has built trustworthy relationships with millions within the crypto community and we look forward to working with them to develop new and interesting experiences for this audience. ”
FTX has come to the fore, thanks in part to the rapid adoption and replication of trading products like derivatives, options, and leveraged tokens, including retail-friendly futures like TRUMP and BIDEN, which currently suggests that cryptocurrency holders are currently strongly anticipating a democratic victory in the upcoming US -Elections.
The Spartan Group, a blockchain consulting firm, advised Blockfolio and FTX on the deal.
Independent and private
Originally launched in 2014 as a pure portfolio tracking app, Blockfolio has grown to become the industry’s de facto resource for price updates for digital assets and project updates on the go. Always offered for free, the app now supports more than 10,000 crypto assets and over 500 exchanges.
During the 2017 ICO boom, extreme volatility and demand among traders led to a joke that one could estimate the price increase for Bitcoin or Ethereum-based tokens by simply counting the seconds it took Blockfolio to update the price feed .
Moncada made it clear that Blockfolio will continue to be a standalone app that aims to respect the privacy of user data and anonymity: gaining and maintaining the trust of users of the app is a value he believes since the app started.
After criticizing the changes to CoinMarketCap’s swap arrangement algorithm, which gave some observers in the cryptocurrency industry the impression that the new parent company had disrupted the numbers, Moncada promised, “There will be no preference within the app – you always can nor import data from exchanges you prefer to use. “”
“Every generation of this industry has the opportunity to reshape the financial landscape and the world at large,” said Moncada. “Doing it well is more than having great product skills and excellent operators – it is having the right values to be honest with real user needs and wants.”
Moncada added that the existing Blockfolio team will continue to develop and develop the app in the future.
Blockfolio – FTX is a hit
Although the value of the Binance-CMC deal has not been publicly disclosed, Binance insiders dismissed the widespread figure of $ 400 million as inaccurate and grossly inflated.
However, other major acquisitions in the industry have shown the amounts involved. The largest deals were mostly focused on exchanges as targets – including Circle’s unfortunate purchase of Poloniex for $ 400 million and Bk Global Consortium’s purchase of a controlling stake in Bithumb in South Korea for $ 354 million Dollar.