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Crypto Exchange FTX is Exploring a Robinhood Buyout: Sources

WikiBit 2022-06-28 11:00

Abstract:The popular cryptocurrency exchange may be extending its influence again as the crypto market reels from its financial woes.

  Sam Bankman-Fried (SBF)s crypto exchange FTX is examining pathways by which it can acquire Robinhood, according to people with knowledge of the matter.

  •   As reported by Bloomberg on Monday, FTX is having internal deliberations on how it can buy out the brokerage app.

  •   The source of the information chose to remain anonymous, as this matter is not public yet. FTX is also yet to formally approach Robinhood with an offer.

  •   The exchange may still opt out of the deal, as no final decisions have been made.

  •   Robinhood is an app that grants users commission-free stock and cryptocurrency trades. It has since announced its upcoming NFT and Defi compatible non-custodial wallet, following plans for a lightning network wallet revealed in April.

  •   Robinhood grew massively in popularity during the 2021 Dogecoin boom, and currently holds around one-third of all circulating DOGE.

  •   However, the company was forced to lay off 9% of its full-time employees in April due to overhiring during the previous year. Multiple other crypto companies have since been forced into the same position, while others face possible insolvency.

  •   Meanwhile, SBF has positioned himself as a market savior at this time, offering to bailout firms like BlockFi and Voyager at FTX and Alameda Research respectively.

  •   SBF already acquired a 7.6% stake in Robinhood in May, after which HOODs price soared.

  •   The billionaire said at the time that Robinhood was an “attractive investment,” but that he had no intention of “changing or influencing” the company. For more blockchain news, please download WikiBit - the Global Blockchain Regulatory Inquiry APP.

  Remains to be seen if the purchase will take place, or even if FTX will provide Robinhood with a formal offer. At the time of writing, HOODs shares seem to have positively reacted to the news, the stock was traducing below $8 before the Bloomberg report and jump to $12 after.

  HOOD's price rallies on a potential acquisition from crypto exchange FTX. Source: HOODUSD Tradingview

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