Dragonfly Capital, a San Francisco-based venture capital firm, has just invested $10 million in cryptocurrency derivatives exchange Bitget.
According to Dragonfly, the funds will help Bitget expand its global market and services while also supporting upcoming initiatives aimed at promoting crypto education and adoption.
Bitget, which was founded in 2018, has already grown to include over 80,000 traders and 380,000 copy traders (people who use automation to sync their trading positions with those of other traders). For 2023, the exchange plans to expand its spot trading, launchpad, and Bitget Earn products.
This isn’t Dragonfly’s first foray into the blockchain space. The firm has previously invested in well-known blockchain companies like Matter Labs, 1inch, and Polygon, and reportedly manages around $3 billion in assets.
It’s worth noting that cryptocurrency derivatives exchanges took a hit when FTX collapsed last November. At the time, FTX facilitated $6.6 billion in contracts per day in trading volume and had an open interest of $5.1 billion. Since then, though, things have started to pick up again. According to Coinmarketcap and CoinGecko, central exchanges’ open interest has recovered to around $68.5 billion as of now, up from an estimated $60.1 billion in December 2022.
Of course, the crypto industry still faces challenges. For example, the Commodity Futures Trading Commission (CFTC) recently sued Binance for allegedly onboarding 2.8 million U.S. customers without registering with the regulator. It’s unlikely that the customers themselves will face any consequences, since it’s the seller’s responsibility to perform due diligence checks before onboarding potential customers in the U.S.
Overall, though, things are looking up for Bitget and the crypto industry as a whole. It’ll be exciting to see what the future holds!
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