Flying Tulip announced that it has raised $200 million in a private funding round and is also eyeing to open an on-chain public sale of its $FT token at a similar valuation.
The platform is a full-stack on-chain exchange that secured backing in $200 million from known investors such as CoinFund, DWF, FalconX, Brevan Howard Digital, Tioga Capital, and Virtuals Protocol, with a few others.
It is worth noting that the sale will be hosted directly on Flying Tulip’s platform with an aim to raise $800 million at a valuation of $1 billion.
Why did Giant rush to invest in Flying Tulip?
Flying Tulip has built in a unique safety net for investors; anyone who buys FT tokens in the private and public rounds can redeem them at any time for the exact amount they originally paid.
It primarily works like a built-in insurance policy; investors can’t lose their principal, but they still keep the potential to earn unlimited upside in case the value of the token grows.
Instead of letting the raised funds be used the right way, up to $1 billion will be placed in established DeFi platforms like Aave, Ethena, and Spark. Yet these investments are expected to generate nearly 4% annual returns or around $40 million annually.
Flying Tulip aims to build a complete on-chain trading ecosystem that goes far beyond spot swaps. It intends to bring together multiple layers of financial services, including spot trading, perpetual contracts, lending, money market options, structured yield products, and even on-chain insurance.
Andre Cronje highlighted that this isn’t simply an incremental upgrade; Flying Tulip is designed as a full rebuild of the major components of decentralized finance, from automated market maker to central limit order books (CLOBs) to derivatives, stablecoins, and insurance.