Dragonfly Capital, a San Francisco-based venture capital firm, recently invested $10 million in cryptocurrency deratives exchange Bitget. The funds will be utilized to support the exchange's expansion, worldwide market development and planned corporate social responsibility programs that involve crypto education and adoption. Bitget's 2023 roadmap is to expand its spot trading, launchpad and Bitget Earn products.

The rapid growth of Bitget has seen the exchange draw in 80,000 traders and 380,000 copy traders, since its emergence in 2018. Copy traders are individuals who mirror the trading positions of others through automation. However, the cryptocurrency derivatives market may still be sensitive to collapses and regulation deficiencies. For instance, the collapse of FTX, which had 6.6 billion contracts per day in trading volume, with an open interest of 5.1 billion, left the industry at a crossroads. Open interest fell to an estimated 60.1 billion at its lowest in December 2022.

Fortunately, the industry has recovered and the open interest rate has now risen to 68.5 billion. Nevertheless, the market could be further rocked by the Commodity Futures Trading Commission's lawsuite against renowned exchange Binance. The Commission alleges that Binance allowed 2.8 million American customers to use the platform without registering. Despite this, the onus lies with the seller to identify customers, so it's unlikely the customers themselves will suffer any penalty for landing on the exchange.



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