{"id":49281,"date":"2022-06-28T18:38:15","date_gmt":"2022-06-28T16:38:15","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=49281"},"modified":"2022-06-28T18:38:15","modified_gmt":"2022-06-28T16:38:15","slug":"ftx-debunks-rumors-about-buying-robinhood","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/ftx-debunks-rumors-about-buying-robinhood\/","title":{"rendered":"FTX Debunks Rumors About Buying Robinhood"},"content":{"rendered":"
It was recently reported that FTX<\/strong> is considering a deal for the acquisition of Robinhood Market Inc<\/strong>. However, the exchange has denied these rumors<\/strong>. The reports suggested that the crypto exchange of Sam Bankman-Fried<\/strong> is discussing the possibility internally<\/strong>. These reports also suggested that Robinhood<\/strong>, the app-based brokerage<\/strong>, is yet to receive any formal takeover proceeding request.<\/span><\/p>\n <\/p>\n In response to these speculations, the CEO of FTX, Sam Bankman-Fried<\/strong><\/span> said<\/a><\/strong> \u201cthere are no active M&A conversations with Robinhood<\/em>.\u201d However, he further added that the exchange is excited about exploring potential ways<\/strong> to partner with Robinhood, as it has credible business prospects.<\/span><\/p>\n On the other hand, Robinhood did not<\/strong> comment on the rumors. The retail-trading shares<\/strong> of Robinhood went up by 14%<\/strong> amid FTX rumors. However, after the denial<\/strong> of Sam Bankman-Fried went down by 5%<\/strong> in extended trading.<\/span><\/p>\n Sam Bankman-Fried recently told that he has a 7.6% stake<\/strong> in Robinhood. However, he has no plans<\/strong> to take complete control or ownership of the platform. It has been revealed that Robinhood has dual-class shares<\/strong>. As a result, the founders of the platform own 64%<\/strong> of the voting shares<\/strong>. Therefore, it is not possible for anyone to take over the platform without the support of these founders.<\/span><\/p>\n <\/p>\n Robinhood has struggled this year, as the trading volumes<\/strong> have eased a bit. Previously, the platform was in high demand in 2021<\/strong>. Many retail investors poured money into meme stocks, like GameStop and AMC Entertainment<\/strong>.<\/span><\/p>\n This phenomenon hyped up\u00a0<\/strong>the trading volume of the platform. However, things have slowed down since the deterioration of macroeconomic conditions<\/strong>. Furthermore, Robinhood witnessed a sell-off in technology stocks<\/strong>. As a result, the shares of Robinhood slid by a significant 50%<\/strong>. Currently, Robinhood has a market valuation of around $7.70 billion<\/strong>.<\/span><\/p>\n Moreover, FTX has remained hyperactive<\/strong> in making new partnerships and collaborations<\/strong>. The US branch of FTX<\/strong> announced the launching of a stock trading platform<\/strong>. It also acquired Embedded Financial Technologies<\/strong>. As a result of this partnership, the exchange will attain custody, execution, and clearing services<\/strong>.<\/span><\/p>\n In the recent downtrend of the crypto and stocks market, FTX and Sam Bankman-Fried<\/strong> have played a critical role in saving many stakeholders<\/strong>. The exchange offered a $250 million revolving credit facility<\/strong> to a crypto lender, BlockFi<\/strong>. This funding was meant to help BlockFi in combating the raising fears of inflation<\/strong>. BlockFi<\/a><\/strong> had to downsize its employees because of the critical financial conditions. Also, Sam Bankman-Fried also helped crypto brokerage, Voyager Digital<\/strong>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" It was recently reported that FTX is considering a deal for the acquisition of Robinhood Market Inc. However, the exchange has denied these rumors. The reports suggested that the crypto exchange of Sam Bankman-Fried is discussing the possibility internally. These reports also suggested that Robinhood, the app-based brokerage, is yet to receive any formal takeover … <\/p>\nThe Founder of FTX Reveals Stakes in Robinhood<\/span><\/h2>\n