Dragonfly Capital Invests $10 Million in Bitget
Luisa Crawford Apr 05, 2023 08:10
Dragonfly Capital has invested $10 million in cryptocurrency derivatives exchange Bitget to support its global market and service expansion and corporate social responsibility initiatives for crypto education and adoption. Bitget plans to expand its spot trading, launchpad, and Bitget Earn products. Despite the FTX collapse, cryptocurrency derivatives exchanges have recovered, and central exchanges' open interest has risen to approximately $68.5 billion.
Bitget is an exchange for bitcoin derivatives, and the San Francisco-based company Dragonfly Capital, which is a venture capital firm, just made a statement that it has invested $10 million in Bitget. Dragonfly Capital is a part of the company Bitget. The funds are going to be used toward supporting Bitget's continuing expansion in the international market and in its services, as well as the company's planned corporate social responsibility actions targeted at promoting crypto knowledge and acceptance.
Bitget was introduced to the public for the first time in 2018, and since that time, the platform has grown to include more than 80,000 dealers and 380,000 copy traders. Copy traders synchronize their trading positions with the trading positions of other traders by using automation to copy the other traders' positions. As part of its 2023 strategy, Bitget plans to expand the functionalities of its spot trading, launchpad, and Bitget Earn products.
Dragonfly Capital is a well-known venture capital firm that is renowned for investing in major blockchain businesses such as Matter Labs, 1inch, and Polygon. The firm is also known for investing in other firms related to blockchain technology. In the year 2022, the corporation reportedly handled assets with a value of around $3 billion, as stated in the reports. Bitcoin derivatives exchanges have made a complete comeback despite the fact that FTX had a catastrophic meltdown back in November. Throughout that period of time, the exchange was accountable for enabling a daily trading volume of contracts totaling $6.6 billion, and it had an open interest of $5.1 billion.
As a result of the failure of FTX, the open interest on major exchanges has increased to around $68.5 billion at the time this article was published, according to information compiled by Coinmarketcap and CoinGecko. This number is much more than the predicted $60,1 billion that existed during the month of December 2022, when open interest was at its lowest point.
In spite of the recent spike in activity, the cryptocurrency company is still beset by challenges, like as the recent legal action taken against Binance by the Commodities Futures Trading Commission. Allegations made by the Commodity Futures Trading Commission (CFTC) state that Binance attracted around 2.8 million customers from the United States without first registering with the regulatory body. Since it is the responsibility of the seller to carry out processes of due diligence before registering potential customers in the United States, it is quite unlikely that the claimed users would be the ones to bear the costs of finding their way into the exchange.
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