Blockfolio is now out of the question, and with it also the second (and perhaps last) opportunity for a crypto exchange to introduce millions of existing retail users into its ecosystem.
Following Binance’s acquisition of CoinMarketCap (CMC) a few months ago, crypto industry observers identified the most popular portfolio management app in the retail market as the likely target of the next huge deal in this area.
FTX, active only since 2019, was willing to pay the price of $150 million to access Blockfolio’s user base of around $6 million to support the rapid growth of the exchange.
„We are at the beginning of a bull market that will bring new users into the industry,“ he explained to Cointelegraph Ed Moncada, co-founder and CEO of Blockfolio.
„Virtually everyone responded after the deal,“ he continued. „But as for the alignment of our missions, both of which are very focused on the best user experience, there is no exchange with faster or more meticulous growth of the Bitcoin Era team.
Alluding to a „new trading experience“ currently under development, FTX co-founder and CEO Sam Bankman-Fried explained that „from the outset, FTX’s goal has been to provide the highest quality trading experience with the deepest liquidity for all possible types of traders. Blockfolio has developed trusted relationships with millions of people within the crypto community, and we are excited to work with them to create new and interesting experiences to offer to this audience“.
FTX has come to the fore thanks to its rapid introduction and iteration of trading products such as derivatives, options and leveraged tokens. These opportunities include futures contracts dedicated to retail traders such as TRUMP and BIDEN, which currently suggest that crypto users predict a clear victory for the Democrat candidate in the upcoming U.S. elections.
The Spartan Group, a blockchain consulting firm, assisted Blockfolio in the deal.
Independent and private
Blockfolio was initially launched in 2014 as an app limited to portfolio monitoring, evolving into the industry’s definitive resource for moving updates on digital asset prices and crypto projects. The app has always been available for free and now supports more than 10,000 crypto assets and over 500 exchanges.
During the ICO boom in 2017, extreme volatility and demand led to a joke among traders that it was possible to estimate the increase in Bitcoin and Ethereum-based tokens prices simply by counting the seconds before Blockfolio was able to update its feed.
Moncada explained that Blockfolio will continue as an independent app, with a strong commitment to privacy and anonymity: earning and maintaining user trust is a value that has been in the foreground since the app’s launch.
Referring to the criticism addressed to CoinMarketCap following the changes made to the exchange ranking algorithm, considered by some in the industry as a sign of interference from the new parent company, Moncada promised that „there will be no favoritism in the app, you can still import data from any exchange“.
„This industry has a unique opportunity to revolutionize the financial landscape and the world,“ explained Moncada. „To do it the right way is not enough to have excellent skills in product development and excellent operators, you have to follow the right values to build with integrity in order to meet the real needs and desires of users“.
Moncada added that Blockfolio’s existing team will continue to develop and work on the app.