Last week, the institutional cryptocurrency trading platform FalconX made an important announcement. According to the announcement, FalconX raised a total of $17 million in a round led by Accel. Interestingly, Accel has Facebook as well as Slack in its portfolio. Moreover, Coinbase Ventures, Fenbushi Capital, and Land Avon Ventures invested in FalconX.
Furthermore, the cryptocurrency trading platform should be proud of this result. For example, social media giant Facebook raised $12.7 million in a Series A funding round in 2005. At the moment, Facebook is worth more than $600 billion. Notably, that funding round was also led by Accel. Moreover, a pre-seed round is two to three raises behind a Series A.
Cryptocurrency trading platform and investors
The main reason why investors decided to invest in FalconX is the best trade execution. This cryptocurrency trading platform provides the best trade execution. An Artificial Intelligence plugs into a network of exchanges and dark pools. It provides the best available prices as well as minimal slippage.
According to the firm’s website, the idea is to provide the base trading layer that mainstream financial institutions need when it comes to entering the digital asset class.
This platform is useful as it provides a solution to wash trading. Wash trading happens when exchanges or crypto projects trade against themselves to inflate prices. As a result, the prices go up and exchanges or crypto projects dump assets on unsuspecting investors. This is a very serious problem.
Investors want to prevent such cases and thanks to FalconX, it is possible to tackle problems such as “wash volume” etc.
This cryptocurrency trading platform claims that it has around 100 clients. For example, hedge funds, proprietary firms as well as some crypto mining companies and crypto exchanges.
FalconX plans to spend $17 million it raised as part of the pre-seed round on new products and to expand trade execution suite. Moreover, it wants to spend money to expand the company