Cryptocurrency exchange FTX acquires portfolio tracker Blockfolio
FTX is spending $150 million for the acquisition. But take that price with a grain of salt as it’s a combination of cash, cryptocurrency and stock. Cryptocurrency (and stock) in particular might not be perfectly liquid.
While an exchange buying a portfolio tracking app seems to be a right fit, they don’t necessarily have the same audience right now. FTX is better positioned for professional traders as it lets you 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 lets you add your portfolio of cryptocurrencies and track their value over time. The app also lets you view market moves by searching for a token in the app. You can also automate portfolio tracking by connecting the app with your exchange accounts.
With today’s move, FTX wants to launch a simpler trading experience for retail customers. The teams behind FTX and Blockfolio are already working together on a Blockfolio-branded trading product.
And if FTX takes advantage of Blockfolio’s user base, it’s certainly going to be a big advantage when it comes to liquidity.