News
Robinhood Investing is ready to take flight
Exciting news for investors! A well-known crypto billionaire has taken a stake in Robinhood, signaling even greater things ahead for the company. Learn more below.
Advertisement
by Aline Barbosa
After Sam Bankman-Fried’s acquisition of 7.6% of the company, Robinhood’s is ready to turn things around.
It hasn’t been the easiest year for Robinhood Investing so far in 2022. The stock market’s continued plunge and bitcoin losing value with each passing day have impacted deeply the online brokerage platform’s revenue. Not only that, but the company also reported a significant loss and a drop in its users. This year alone stocks have plummeted around 40%, which caused Robinhood to announce a massive round of layoffs.
But not all is lost. Robinhood’s shares grew over 25% last Friday after one of Sam Bankman-Fried – a young crypto billionaire – investment firms bought 7.6% of the company. The move was disclosed in a Securities and Exchange Commission Filing and caused an uproar in the crypto community.
In the filing, Bankman-Fried – the man behind FTX, a promising cryptocurrency exchange – said that he bought the shares because he believes Robinhood represents an attractive investment. He mentioned that he plans to keep his stake as a passive investment. Bankman-Fried closed his statement adding that he has no intention of influencing or taking any action that would impact the control of Robinhood.
However it is important to note that the same happened with Elon Musk. The CEO of Tesla also planned a passive investment on Twitter before changing his mind and deciding to buy the entire company. A deal that is currently on hold until he can verify if bots and fake accounts are indeed lower than 5% of Twitter’s user base.
FTX Exchange
FTX is undoubtedly one of the biggest exchanges currently on the market. Since its launch, in 2019, it has attracted over one million users to its database. That said, having its creator as a Robinhood investor could increase the online brokerage’s credibility. Not only that, but it could also mean a substantial backing from a young investor with a lot of money.
Recently, FTX’s value grew to $32 billion thanks to a move to raise new funding to the company. According to Forbes’ data tracking, Sam Bankman-Fried, who’s also the man behind Alameda Research – a crypto trading firm – is now worth approximately $21.2 billion.
On Thursday, Robinhood’s official communication’s team issued a statement on Twitter saying their goal is to create a multi-generational company. That means allowing its users to generate enough wealth to pass it down to their future generations. The statement went on to praise Bankman-Fried’s new investment and assured its customers that the company’s journey is just beginning.
Bankman-Fried’s new investment could really assist Robinhood in getting back on track. Due to the market’s constant volatility, Robinhood and its crypto brokerage opponent Coinbase have been struggling to get on their feet this year.
Coinbase’s shares plunged earlier last week after reporting low earnings and an overall weak outlook. By Friday, those shares rallied right next to Robinhood. Even though Coinbase’s stocks were up 25%, its shares were still a 30% low last week.
If you want to start investing your money with Robinhood, we can help. Follow the link below for an easy step-by-step guide on how to open your account.
How to join the Robinhood Investing?
Need a little help to start investing? Take a look at Robinhood Investing features to see if it suit your needs. It has no fees and no comissions.
Aline Barbosa
Trending Topics
Application for the Capital One Quicksilver Cash Rewards Credit Card: how does it work?
Capital One Quicksilver Cash Rewards is a card that returns money in a simple way and allows owners to accumulate various rewards over time!
Keep ReadingWhat is a checking account and how can it benefit you: find out here!
A checking account can offer you convenience, security, and flexibility - find out what is a checking account and get the best one!
Keep ReadingBest student loans for bad credit: learn the easiest to get!
There are a number of student loans out there. Some offer greater advantages than others. Check out the best student loans for bad credit.
Keep ReadingYou may also like
Sam´s Club Credit Plus Member Mastercard credit card review: is it worth it?
Find out if the Sam’s Club Credit Plus Member Mastercard credit card, which offers cash back on gas and dining, is a good option for you.
Keep ReadingWells Fargo Autograph℠ Card application: how does it work?
Learn how to apply for the Wells Fargo Autograph℠ Card. Enjoy cash back reward and welcome bonus! Read on for more!
Keep ReadingObamacare: all you need to know about the program
Find out how Obamacare can help you get health care coverage for your family, plus what it covers and who is eligible. Read on!
Keep Reading