Crypto trading platform Fomo has raised $75 million in a Series B funding round led by Index Ventures, bringing its valuation to $550 million. The company said the new capital will go toward expanding its 17-person team and pursuing acquisitions.
Union Square Ventures joined the round alongside angel backers including Mark Pincus, Humam Sakhnini, and Kevin Hartz. The latest raise brings Fomo’s total disclosed funding to about $94 million, following a $17 million Series A completed in 2025.
Rapid growth and product focus
Founded in 2025 by former dYdX executives Paul Erlanger, Se Yong Park, and Prashan Dharmasena, Fomo is positioning itself as a simplified entry point into crypto trading. The platform says users can onboard in roughly 30 seconds and access features such as live trade feeds and leaderboards.
Fomo operates on a non-custodial model, meaning it does not hold user funds directly. The company argues this structure helps it stay adaptable to regulation while aligning with growing demand for self-custody.
In June, the platform added perpetual futures trading and is now onboarding about 3,500 new users daily. Its infrastructure enables trading across multiple blockchains without requiring users to manage bridges or gas fees.
Backing from established venture firms
Index Ventures’ participation marks one of its larger consumer-focused blockchain bets. The firm previously backed stablecoin startup Bridge, which was acquired by Stripe for $1.1 billion in 2025, and holds investments in companies such as Figma and Scale AI.
Union Square Ventures has also continued to expand its blockchain exposure, with past investments including Polygon and Matter Labs.
Expansion beyond crypto
Fomo’s leadership said it plans to expand into tokenized assets, including stocks and derivatives, as blockchain-based financial products gain traction. The tokenized real-world asset market has grown rapidly, exceeding $43 billion and rising roughly 37% over the past six months.
Funding lands amid tougher market conditions
The funding round comes at a time when venture capital in the digital asset sector has slowed. Investment fell by about half to $4 billion in the first quarter of 2026 compared to the previous quarter, reflecting a more selective approach to capital allocation.
Fomo’s $550 million valuation, just a year after its founding, highlights continued demand for platforms that reduce barriers to entry. Its focus on fast onboarding and eliminating technical friction addresses long-standing adoption challenges in crypto markets.
Risks and market dynamics
The addition of perpetual futures introduces higher-risk trading dynamics. These derivatives now account for more than 70% of total crypto trading volume and allow for significant leverage, amplifying both gains and losses.
Social trading tools, such as leaderboards and live feeds, can offer useful insights but may also encourage herd behavior. Traders are likely to treat these features as informational rather than definitive signals.
Meanwhile, broader market conditions remain uncertain. Institutional demand has weakened, with spot ETFs recording six consecutive weeks of outflows. Bitcoin has been trading around $64,000 after a decline of nearly 4% over the previous week, pointing to continued price stagnation.
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