But there could be hope on the horizon.
Bankman-Fried, who runs start-up FTX, a Bahamas-based cryptocurrency exchange, said in the filing that he bought Robinhood’s shares because he believes they “represent an attractive investment.” He added that his stake is meant to be a passive investment and that he “currently has no intention of taking any action towards changing or affecting the control” of Robinhood.
FTX has taken over the cryptocurrency world, Attracting more than a million users
Since its launch in 2019, having its founder as a strategic investor in Robinhood can help give the brokerage more credibility, not to mention a backer who has a lot of money at his disposal.
The privately owned FTX recently raised new funding The company is valued at $32 billion.
According to data tracked by Forbes, Bankman-Fried, who is also the founder of cryptocurrency exchange Alameda Research, is valued at $21.2 billion.
FTX had no further comment about Robinhood’s stake in Bankman-Fried. Robinhood released a verified statement Thursday Robinhood Communications Team Twitter feed
“We are redoubling our efforts in creating a multi-generational company where customers can create wealth for their generations,” he said.
“Of course, we think it’s an attractive investment too. We have the best customer base, we offer great new products, and we have a team to deliver. Our journey is just beginning,” Robinhood added.
An investment from Bankman-Fried can help Robinhood get back on track. Robinhood, along with rival cryptocurrency brokerage Coinbase, has struggled this year due to volatility in financial markets.
shares Queen Piece
Which Dropped earlier this week
After a poor earnings report and poor outlook, it rose in conjunction with Robinhood on Friday. Coinbase stock is up about 25%. But its shares are still down 30% this week and more than 70% this year.
“Devoted student. Bacon advocate. Beer scholar. Troublemaker. Falls down a lot. Typical coffee enthusiast.”