Popular cryptocurrency exchange FTX is exploring the prospect of buying Robinhood Markets Inc, according to Bloomberg reporters. So far, the matter has only been talked about internally, and Robinhood has not received a formal offer. But the merger will help FTX further strengthen its position in the crypto market. It could also save Robinhood’s investors, as the company is going through some tough times right now.
Sam Benkman-Fried’s company bought a 7.6% stake in Robinhood in May. The deal cost $648 million.
In the year since the IPO (initial public offering), Robinhood has lost more than 75% of its value. But yesterday, following news of a possible deal with FTX, their shares gained 14% and their market capitalization rose to nearly $8 billion.
Robinhood has been successful thanks to commission-free trading, as well as the general growth of the crypto market during the bullish period. Millions of people with modest initial investments started investing in crypto on this platform. At the time, shitcoins were growing rapidly on the wave of popularity. Customers were in the black, and Robinhood was growing in popularity.
Now the company is trying to regain its former glory. They are preparing a crypto wallet for WEB3 with zero commissions, plastic cards with crypto-bonuses and hold airdrops for loyal customers. So Robinhood is one quality company that is really worth supporting in the crypto-winter.