However there may very well be hope on the horizon.
Bankman-Fried, who runs the startup FTX, a cryptocurrency trade based mostly within the Bahamas, mentioned within the submitting that he purchased Robinhood shares as a result of he believes they “symbolize a beautiful funding.” He added that his stake is supposed to be a passive funding and that he does “not at the moment have any intention of taking any motion towards altering or influencing the management of” Robinhood.
FTX has taken the crypto world by storm, attracting more than a million users
since launching in 2019, so having its founder as a strategic investor in Robinhood may assist give the brokerage extra credibility, to not point out a backer with numerous cash at his disposal.
The privately held FTX not too long ago raised new funding that values the company at $32 billion.
In line with information tracked by Forbes, Bankman-Fried, who can also be the founding father of crypto buying and selling agency Alameda Analysis, is worth $21.2 billion.
FTX had no additional remark about Bankman-Fried’s Robinhood stake. Robinhood issued an announcement Thursday on its verified Robinhood communications team Twitter feed
, saying that “we’re doubling down on making a multi-generational firm the place prospects can construct wealth for his or her generations.”
“In fact, we expect it’s a beautiful funding, too. We’ve one of the best buyer base, are introducing nice new merchandise, and we have now the workforce to ship. Our journey is simply starting,” Robinhood added.
The funding from Bankman-Fried may assist Robinhood get again on observe. Robinhood, together with crypto brokrage rival Coinbase, has struggled this 12 months as a result of volatility within the monetary markets.
Shares of Coinbase
, which plunged earlier this week
following a awful earnings report and weak outlook, rallied in tandem with Robinhood on Friday. Coinbase inventory was up about 25%. However its shares are nonetheless down 30% this week and greater than 70% this 12 months.