According to leaked documents, FTX’s revenue breakdown showed a 1842% increase in operating income, from 14 million to 272 million in the 2020/21 period.
Their revenue also rose from 89 million, to 1.02 billion in the same time frame, according to CNBC. This translates to roughly 27% profit margins, with a large chunk of cost going towards marketing and advertising.
It's time for a new era of TSM.
— TSM FTX (@TSM) June 4, 2021
Welcome to the family @FTX_Official pic.twitter.com/VLofrUlmSU
This includes a 210 million partnership with Team Solomid, a professional e-sports gaming organization.
Despite their success, there has been public backlash against FTX, and rumors that they are front-running trades on the platform.
We've come full circle to the your browser is not browser part again
— Hsaka (@HsakaTrades) August 20, 2022
It's not just the trading engine, just UI related stuff like loading wallet balances, chart updates, order updates, etc.
ideally the ftx stack becomes more browser compatible instead of chrome rewriting code pic.twitter.com/4qe4VLhzyW
However, their president, Brett Harrison, has come out to clear the air on what is actually going on.
1/ Lots of discussion about FTX UI latencies taking place today. Further info on latencies in crypto exchange client-server applications:
— Brett Harrison (@Brett_FTX) August 20, 2022
In a full-length explanation, he breaks down the issues presented and adds some counter points.
Essentially,
- Latency occurs due to distance from servers
- Browsers may be causing lag
- Latency is being reduced constantly by FTX
- User Interface sometimes lags actual order
Sam Bankman-Fried, CEO of FTX, has also been fully transparent with any drawbacks on the site and remains open to feedback.
yeah sorry we've made stops/etc. much more responsive, but if it's still an issue definitely tell us!
— SBF (@SBF_FTX) August 20, 2022
However, this has not stopped other big names from taking shots at the Centralized Exchange.
Just learned a new word, jitters. On 1 particular exchange, sometimes your orders will be stuck for a bit, and a few other orders will get in front of you. Apparently, this happens often enough on this exchange that the traders coined a term for it, jitters. (Front running) 🚫
— CZ 🔶 Binance (@cz_binance) August 19, 2022
ChangPeng Zhao, CEO of Binance, pointed out that front-running orders happens frequently on a certain exchange. While he has not named the exact perpetrator, many twitter users have identified FTX as the likely target.
While FTX is clearly a leader in the centralized exchange space, their prevalence over other CEXs has sounded alarms among crypto natives.
With the values of decentralization and transparency placed at the forefront of many Web3.0 participants, their questionable interactions with FTX have led many to turn on the platform.
Also Read: Regulations Are Becoming Problematic – FTX Freezes Account Using Aztec Network
[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]
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