SFOX, a cryptocurrency exchange based in Los Angeles earned a total of $22.7 Million in its first-round funding as announced on the 16th of August. The funding is aimed at the expansion of the operation of the exchange as it seeks to become a prime dealer for institutional investors through building out the rails and infrastructure to become the premier institutional crypto asset management platform.
SFOX Raises $22.7 Million In First Funding
The exchange was established in 2014 and has developed in the cryptocurrency community to achieve over $9 billion in transaction volume and so also become the premier cryptocurrency prime dealer for large-scale investors such as funds, family offices, and high-net-worth individuals.
The funding is meant to aid the expansion of its operations and achieving its vision of cryptocurrency exchange for large-scale investors and institutions.
The funding was backed by Y Combinator, Khosla Ventures, DHVC, Blockchain Capital, Upside Partnership, SV Angel, DCG, Mark Britto, and Airbnb Co-Founder Nathan Blecharczyk and led by Tribe Capital and Social Capital.
Algo-Trading Governing Investment Approach
SFOX, exchange operates an algorithmic Bitcoin trading platform to buy and sell Bitcoin cryptocurrency. Its smart routing performs in-depth order book analysis and routes orders for optimal execution; this enables it to let institutions trade high volumes without impacting prices by connecting them to a vast network of global cryptocurrency liquidity location.
In sharing the enormous advantage the exchange has over others, the CEO of SFOX, Akbar Thobhani states,
“The distributed nature of cryptocurrency has given rise to a large breadth of exchanges around the globe, creating a fragmented market and limited liquidity. Over the last four years, we’ve been able to provide our clients a single point of access and the best price execution by building the necessary smart routing technology to navigate and connect these global markets and exchanges.”
According to Arjun Sethi, a Co-Founder of SFOX, he states that “what has always excited us about SFOX and differentiates them from other players is that they provide access to a globally integrated order book, sourced from exchanges, OTC desks, and market makers.” He further stated that this feature is a satisfactory feature sought by institutional investors looking forward to investing in cryptocurrencies.
This funding will definitely aid the growth of the exchange on every side, causing an influx of traders to the platform which will result in more transactions being executed on the platform.