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

After Sam Bankman-Fried’s acquisition of 7.6% of the company, Robinhood’s is ready to turn things around.

robinhood logo
Robinhood is ready for the future. Source: The Mad Capitalist.

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

robinhood logo
Robinhood is backed now by FTX’s founder. Source: The Mad Capitalist.

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. 

robinhood investing app

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.

Trending Topics

content

R.I.A. Federal Credit Union Mastercard® Rewards Card Review

Need an efficient way to earn rewards across your purchases? Check out our review of the R.I.A Federal Credit Union Mastercard® Rewards Card.

Keep Reading
content

Learn to apply easily for Pick a Lender Personal Loan

Learn how to apply for Pick a Lender Personal Loan! Get up to $40K and use it for several purposes! Read on!

Keep Reading
content

What is a money market account and how to open one?

Learn what a money market account is and how it can help you save money while earning interest. Keep reading!

Keep Reading

You may also like

content

Milestone® Mastercard® – Less Than Perfect Credit Considered application

If you have less than perfect credit, the Milestone® Mastercard® - Less Than Perfect Credit Considered may be a good option for you. Read on!

Keep Reading
content

Apply for the First Citizens Bank Smart Option Card: fast process

Apply for the First Citizens Bank Smart Option Credit Card easily. Keep reading for all the details you need to know! $0 annual fee!

Keep Reading
content

0% intro APR: Apply for the PNC Core® Visa® Credit Card

Apply now for the PNC Core® Visa® Credit Card with our assistance. Learn what is required, where, and how to get it - $0 annual fee!

Keep Reading