However there might be hope on the horizon.
Bankman-Fried, who runs the start-up FTX, a cryptocurrency exchange based in the Bahamas, stated in the filing that he purchased Robinhood shares since he thinks they “represent an appealing financial investment.” He included that his stake is implied to be a passive financial investment which he does “not presently have any intent of taking any action towards altering or affecting the control of” Robinhood.
FTX has actually taken the crypto world by storm, drawing in more than a million users given that introducing in 2019, so having its creator as a tactical financier in Robinhood might assist offer the brokerage more trustworthiness, not to point out a backer with great deals of cash at his disposal.
The independently held FTX just recently raised brand-new financing that values the business at $32 billion. According to information tracked by Forbes, Bankman-Fried, who is likewise the creator of crypto trading company Alameda Research study, is worth $21.2 billion.
FTX had no additional remark about Bankman-Fried’s Robinhood stake. Robinhood released a declaration Thursday on its validated Robinhood interactions group Twitter feed, stating that “we’re doubling down on producing a multi-generational business where consumers can construct wealth for their generations.”
” Obviously, we believe it is an appealing financial investment, too. We have the very best consumer base, are presenting excellent brand-new items, and we have the group to provide. Our journey is simply starting,” Robinhood included.
The financial investment from Bankman-Fried might assist Robinhood return on track. Robinhood, together with crypto brokrage competing Coinbase, has actually struggled this year due to the volatility in the monetary markets.
Shares of Coinbase, which plunged previously today following a poor incomes report and weak outlook, rallied in tandem with Robinhood on Friday. Coinbase stock was up about 25%. However its shares are still down 30% today and more than 70% this year.