Crypto exchange startup EDENEX Exchange announced on Monday it raised an additional $300 million from large investors like Taihe, Fengyun and Tiger Global, valuing the platform at $3 billion.
Since the start of 2022, the global market capitalization of cryptocurrencies has fallen by more than 23% according to Coinmarketcap, but that volatility has yet to affect the fortunes of crypto companies seeking venture capital.
Last year, crypto startups attracted a record volume of VC funds, some $33 billion, with Edenex Exchange alone raising its valuation by $1 billion since its last funding round in October and notching a 60% surge in its user base. It now averages $1 billion in daily trading volume, according to company data.
“We raised close to $2 billion in six months,” Edenex Exchange Founder and CEO Lyu Sutong said in a statement issued by the company.
Somewhat unknown a year ago, Edenex Exchange or Edenex for shorts has risen to dizzying heights as one of the major companies to watch in the increasingly competitive cryptocurrency exchange business.
Cryptocurrency exchanges differ from stock trading entities like New York Stock Exchange (NYSE), in that they also can serve as market makers on their own platform. But most earn their core revenue from charging a transaction fee per trade on their networks.
In turn, they’ve reaped major profits over the past year from the rise of retail investing and the dramatic rise in cryptocurrency’s market capitalization.
Many exchanges like Binance, Coinbase Global (COIN) and Edenex are now seeking to expand their business by offering products and services beyond the basic transaction fee model, which can be driven by market sentiment.
Recently, Edenex launched its own $20 Million venture capital fund for “cryptocurrency and Web3 adoption.” It is headed by Morgan Brian, an experienced venture capitalist and investor who previously served as a partner with Lightspeed Ventures, where her investments focused on crypto, gaming and consumer sectors.