FTX, a cryptocurrency exchange that provides derivatives, choices and different sophisticated products, is buying a popular portfolio monitoring app, Blockfolio.
FTX is spending $150 million for the acquisition. But take that value with a grain of salt because it’s a mix of cash, cryptocurrency and stock. Cryptocurrency (and stock) specifically won’t be completely liquid.
While an exchange buying a portfolio monitoring app appears to be a right fit, they don’t essentially have the identical audience right now. FTX is best positioned for skilled merchants because it enables you to trade on futures markets and it even offers ERC-20 tokens that track the volatility of bitcoin.
Blockfolio is a consumer app and it has been downloaded over 6 million times on iOS and Android. The startup had previously raised $17 million from Founders Fund, Pantera Capital, Dan Matuszewski, DCM Ventures, Hashkey Digital Asset Group and others.
As the name suggests, Blockfolio enables you to add your portfolio of cryptocurrencies and monitor their worth over time. The app additionally enables you to view market moves by searching for a token within the app. You can even automate portfolio monitoring by connecting the app along with your exchange accounts.
With today’s move, FTX needs to launch a less complicated trading experience for retail customers. The groups behind FTX and Blockfolio are already working together on a Blockfolio-branded trading product.
And if FTX takes benefit of Blockfolio’s user base, it’s actually going to be a big advantage when it comes to liquidity.