1)
Putting Together the Pieces
Putting Together the Pieces
2) When FTX launched in spring 2019, it had a cool new risk engine, some neat products, tons of liquidity...
...and no volume. That's what happens when you launch a new exchange.
...and no volume. That's what happens when you launch a new exchange.
3) On the first few days, it traded about $100k. It grew, slowly but exponentially. We ground away at it, spending all day talking to retail and institutions and day traders and influencers and everyone we could find.
And, over time, we grew, and we learned how to grow.
And, over time, we grew, and we learned how to grow.
4) We had our first $1m day in April, our first $100m day June, and our first $1b day in September.
And as we found our way around the space we started growing in the fastest ways we could find: reaching out to institutions and whales and Crypto Twitter and WeChat.
And as we found our way around the space we started growing in the fastest ways we could find: reaching out to institutions and whales and Crypto Twitter and WeChat.
5) As I tweet this we're just over $1b for the day but there's no celebration: it happens many days.
But there's so much more to go: from $1b to $10b, and then growing beyond the scope of exchanges we see now. I'm optimistic that, over time, we'll get there.
But there's so much more to go: from $1b to $10b, and then growing beyond the scope of exchanges we see now. I'm optimistic that, over time, we'll get there.
6) Meanwhile, in spring 2020 we launched FTX US. It has a cool new risk engine, some neat products, tons of liquidity...
...and no volume. Because that's what happens when you launch a new exchange.
...and no volume. Because that's what happens when you launch a new exchange.
8) And the default plan here is a re-run:
a) reach out to institutions
b) reach out to aggregators of volume
c) reach out to large traders
d) reach out to retail
and grind away
a) reach out to institutions
b) reach out to aggregators of volume
c) reach out to large traders
d) reach out to retail
and grind away
9) And then it joins along with FTX.com, slowly growing.
And, to be clear, we will do that. We'll do that with FTX US, and with FTX, and keep pushing as far as we can go.
But over the past year I've had the time and space and context to think bigger and faster.
And, to be clear, we will do that. We'll do that with FTX US, and with FTX, and keep pushing as far as we can go.
But over the past year I've had the time and space and context to think bigger and faster.
10) We've had plans over the course of the last year to whitelable products. For exchanges and apps and games and everything else you can think of. Some of those fell through; some you'll see rolling out over the rest of 2020.
Ed called me up one day to talk about another one.
Ed called me up one day to talk about another one.
11) We'd talked earlier about some sort of investment, and reconnected to talk about some sort of product.
Their users wanted trading, they had the app and brand, and we had the technology and products.
So we mapped out a product plan.
Their users wanted trading, they had the app and brand, and we had the technology and products.
So we mapped out a product plan.
12) Then one day as I was walking back home to the mid-levels in Hong Kong he called me, and the call was more rambling than usual.
After 30 minutes of preamble and circling around he got to the point. What if there was more than just whitelabeling an app?
After 30 minutes of preamble and circling around he got to the point. What if there was more than just whitelabeling an app?
13) They have one of the most loyal and impressive set of users in crypto. What would they really want? What if the goal was to make the best possible product? What would that look like?
14) It was really liberating. Because of all our strengths, that's the largest.
Starting from scratch, and mapping out how something should work, ideally.
And then launching, and getting feedback, and iterating.
Starting from scratch, and mapping out how something should work, ideally.
And then launching, and getting feedback, and iterating.
15) (As an interlude: @EdwardAMoncada send me this in an unrelated context a few months ago. It's been stuck in my head, but moreso I think it's a fitting soundtrack for the rest of the story.)
16) Anyway I'll spare you the rest of the plans and drafts and revisions.
Because at this point, just based on the public releases, the story kind of tells itself.
Because at this point, just based on the public releases, the story kind of tells itself.
18)
20) So anyway, today I'm excited to announce that FTX is acquiring Blockfolio.
21) There are the headline numbers, which are big. ($150m!)
But more importantly there's the vision for something bigger.
But more importantly there's the vision for something bigger.
22) I'd like to extend a huge thanks to @EdwardAMoncada and the @blockfolio team for believing in us.
And to everyone who's supported us along the way, and everyone who's with us for the journey forward.
And to everyone who's supported us along the way, and everyone who's with us for the journey forward.
23) And to Blockfolio's users, who have been with it through thick and thin: I'm excited about what we have planned. But even more I'm excited for what we'll learn along the way, and where this will end up.
So reach out, and tell us what you want. And we'll do it, together.
So reach out, and tell us what you want. And we'll do it, together.
