by Summary
- Dragonfly Capital has invested $10 million in cryptocurrency derivatives exchange Bitget.
- The funds will be used to support Bitget’s ongoing global market and service expansion and upcoming corporate social responsibility initiatives.
- Cryptocurrency derivatives exchanges were negatively impacted by the collapse of FTX in November.
Details
Dragonfly Capital, a San Francisco-based venture capital firm, announced on April 4 that it has invested $10 million in cryptocurrency derivatives exchange Bitget. The funds will be used to support Bitget’s ongoing global market and service expansion as well as its upcoming corporate social responsibility initiatives directed at crypto education and adoption.
Bitget currently facilitates cryptocurrency derivatives trading with an open interest of $2.4 billion, and it has plans to expand its spot trading, launchpad and Bitget Earn products. Since its inception in 2018, the exchange has grown to comprise over 80,000 traders and 380,000 copy traders.
Cryptocurrency derivatives exchanges were significantly impacted by the collapse of FTX back in November. At that time, the exchange facilitated $6.6 billion in contracts per day in trading volume and had an open interest of $5.1 billion. However, since then markets have stabilized due to other prominent firms such as Dragonfly investing heavily into blockchain companies such as Matter Labs, 1inch and Polygon – who now have around $3 billion assets under management in 2022.
FTX Impact
In November 2020 Central Exchanges’ Open Interest collapsed due to the impact of FTX’s downfall – reaching an estimated low point of around $60.1billion at its nadir in December last year according to Coinmarketcap & CoinGecko data sources . But fortunately Open Interest is continuing on a positive trend having recovered up to approximately $68.5billion at the time of writing this article , proving that despite some hiccups here & there , Crypto Derivatives Markets are still going strong !
Binance Lawsuit
The Crypto industry still faces certain issues however – such as the recent Commodity Futures Trading Commission (CFTC) lawsuit against Binance claiming they had onboarded an estimated 2.8million US customers without registering with said regulator . Thankfully though , it appears likely that those alleged users themselves won’t face any consequences – since it is deemed ultimately down to the seller carrying out sufficient due diligence checks before onboarding potential customers from within America .
Final Thoughts
