Robinhood Is Down 20% After Binance Announces FTX Acquisition

InfoNesia.xyz – The price of publicly traded exchange Robinhood stock is down 20%, to around $9.74, on news that Binance will acquire Sam Bankman-Fried’s FTX, which took a 7.6% stake in the popular trading platform in May.

Robinhood opened the day trading at $11.72 before news of the FTX buyout became known.

Robinhood $HOOD closed down 19% today.

FTX CEO Sam Bankman-Fried has 56,273,469 shares in $HOOD

There’s speculation that Bankman-Fried will have to sell some or all of the 7.6% stake to shore up some personal liquidity.

What are your thoughts?

— Benzinga (@Benzinga) November 8, 2022

According to an SEC filing, FTX bought just over 56 million shares of Robinhood, leading some to believe that Bankman-Fried intended to buy Robinhood outright, a claim he denied. Despite this, the price of HOOD jumped 14% on the news of the potential acquisition, to $9.12.

Robinhood down 20% as it turns out FTX used monopoly money to buy their stake… $HOOD

— Ross Gerber (@GerberKawasaki) November 8, 2022

Robinhood Adds Aave and Tezos

Trading app RobinHood has added cryptocurrencies Tezos (XTZ) and Aave (AAVE), allowing users to buy and sell the tokens on its platform. The company tweeted the announcement on Monday, linking…

During the pandemic, Robinhood became a popular trading platform for people stuck at home with government stimulus money in their bank accounts. In January 2021, an army of investors used Robinhood to fight off a short squeeze of the retail gaming company GameStop.

“Robinhood created this app that’s very fun. It certainly does gamify Wall Street to a point where it makes it as easy as a video game, there’s no fees, and with very little education, you can go on and buy and sell stocks,” Ben Mezrich, author of The Antisocial Network told Decrypt at the time. “The double edge of that sword … is that regular people also can lose a lot of money if they don’t have their eyes open and see what can happen.”

Robinhood went public in July 2021, selling initial public offering shares at $38 per share, raising close to $2 billion.

Robinhood to Lay Off 9% of Employees as Growth Slows