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After the collapse of FTX, the major trading firms are working to raise additional capital as the fallout harshly impacted some trading firm’s products and customers.
Amber Group Rising a ‘Hope’ after FTX Collapse
Following a lesson from the unexpected fallout, Amber Group, a crypto trading firm, announced that it has completed a $300 Million Series-C round, led by Fenbushi Capital US, a venture capital firm and joined by other crypto-native investors and family offices.
The trading firm mentioned in their official Twitter account that their new round of fundraising demonstrates the confidence of investors in their business and the commitment to shape the future together. For future prospective, it is important for the firm to adapt and protect their client in this harsh and challenging market condition.
Before the collapse of FTX, Amber was in the process of completing an extension to their Series B+ at a $3 Billion valuation in preparation for a potentially prolonged crypto winter. Post the FTX collapse, they paused after a partial closing and instead moved toward Series C.
Amber group previously disclosed that it had less than 10% of their total trading capital with FTX at the time of collapse, still they rebalance some positions. Thus, the collapse did not affect the daily operations or business continuity.
The firm also states that the vast majority of their clients and products remain intact. While a few of their specific products would have experienced significant drawdowns as an aftermath of the FTX default, unless they could find ways to further protect those affected clients.
No doubt, the collapse of FTX has spread through the industry, exacerbating an already bleak market. Many crypto firms, including Bybit, have cut down employee counts amid a market downturn that has lasted several months.
The Series C round is the quick reaction of Amber Group to adjust their fundraising strategy. As “the investors came on board with the understanding that the firm will be laser-focused on providing best-in-class services to their client base of institutional and high-net-worth investors.”
It will cut down their mass consumer efforts and non-essential business lines, in an effort to focus on the core businesses and clients. However, the firm added that this year was tough for many reasons. But keeping on priority for 2023 with the support of their investors the firm will focus on its core business and clients.
Amber group recaptures its late Co-Founder, Tiantian Kullander who always said, “One step at a time, and we will become the unquestionable category-leader in the industry.”
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
