Despite its position in a digital asset market still reeling from the fallout from FTX, Asian cryptocurrency startup Matrixport Technologies is seeking $100 million in capital.
According to persons familiar with the situation, the Singapore business has obtained a commitment from investors for half of that money at a valuation of $1.5 billion.
Matrixport was valued at $1 billion following a Series C fundraising round last year. According to Bloomberg, the business is still looking for investors for the remaining $50 million.
The company’s capital request comes at a time when investors are feeling the sting of a string of large crypto failures, prompting calls for regulation from both inside the sector and from governments around the world.
According to Bloomberg, Matrixport stated that the demise of the FTX exchange poses no risk of insolvency, despite the fact that hundreds of its clients suffered losses as a result of exposure to FTX-linked products on its platform.
The announcement comes just days after Sequoia Capital, a venture capital (VC) firm, apologized to its investors for a $150 million loss in the FTX collapse and stated that it will improve its due diligence for future investments.
During a conference call with investors, partners indicated that Sequoia Capital had done due diligence on FTX and believed it had been duped about FTX’s ties to Alameda Research.
The company’s ties to Alameda Research were ultimately responsible for its bankruptcy earlier this month. Alameda, FTX’s sister trading business, was clearly heavily exposed to FTX’s FTT token, supporting its apparent solvency and eventually leading to a “run” on FTX.