Alameda Research Invests Undisclosed Amount In CEO’s FTX Exchange Rival, Folkvang
- Alameda Research, company behind crypto derivative exchange FTX has invested an undisclosed fee reportedly north of $1 million in rival exchange Folkvang.
- Alameda was impressed by Folkvang’s huge trading volume despite only being incorporated in January.
Reports have emerged that the cryptocurrency trading firm Alameda Research has invested more than $1 million to a rival crypto quant trading firm Folkvang. Notably, Alameda research owns crypto derivatives exchange FTX.
Hong Kong-based Folkvang was incorporated in January this year and are experts in cryptocurrency derivatives. The CEO and founder Mike van Rossum, on the other hand, has been a crypto quant trader since 2013. Folkvang has made an impressive debut to the derivatives market as they are already present on trading platforms BitMEX owned by Binance, Huobi, OKEx, and FTX.
Alameda Impressed by Folkvang’s Aggressive Trading Approach
Alameda was awed by how Folkvang had taken the market by storm amassing trading volumes in hundreds of millions. Alameda CEO and Cofounder, Sam Bankman-Fried has described Van Rossum as an essential cog of the FTX with an impressive track record in a statement they released although they were not keen to clarify the exact sum of the investment.
“He has demonstrated an enviable track record and we’re excited to take part in the next big phase of his trading firm’s expansion.”
Folkvang top brass doesn’t know what to make of the situation and was sure to put Alameda in check to prevent them from acquiring any trading edges. Mike Van Rossum is however positive that with Alameda cash injection they would be able to thrive in the derivatives market which he described as the fastest-growing space in crypto. The inflow would go well into their expansion plans as they seek to be included in more exchanges.
“It is kind of a strange situation, for sure.”
Exchange, FTX was launched in 2019 May, specializes in Futures, FTT — FTX Token and leveraged tokens. Binance is a minority shareholder in FTX. Meanwhile, FTX has welcomed investors to invest each $250000 in its FTX_Equity token sale with hopes of hitting a $1 billion evaluation by March 7th when the sale is expected to close.