Forbes Billionaire Sam Bankman-Fried’s FTX & Top Ranking Exchange, Robinhood’s 2022 Merger Rumor Reviewed | Crypto News

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Crypto pioneer and billionaire Sam Bankman-Fried is best known for being the founder of derivatives exchange platform, FTX. Recently, however, FTX has been in the news for its consideration of buying the very platform that introduced millions to Bitcoin, Ethereum, and Dogecoin trading. According to Bloomberg, FTX is holding internal discussions about acquiring or merging with Robinhood. Even with the rumors floating around, FTX has not approached Robinhood regarding the buyout.

According to FTX CEO Sam Bankman-Fried, there have been no merger discussions, but his company is enthusiastic about the prospect of working with Robinhood. According to the sources, FTX has not yet made an official offer to Robinhood or decided whether to pursue a takeover. CNBC reported that Robinhood shares increased after news from Bloomberg that cryptocurrency exchange FTX was considering purchasing the trading app. Stock surged 14% to its session high and was momentarily halted on a rumor that FTX was discussing a takeover plan, though no offer had been made to Robinhood.

SBF Invests $650 M in Brokerage, Sparking Acquisition Talks, Joining Robinhood CEO Vlad Tenev & CCO Baiju Bhatt as Voter

The CEO of FTX invested $650 million in a 7.6% stake in the discount brokerage, Cointelegraph reported in May. Generally, a filing like this occurs when someone buys more than 5% of a company, but it can also indicate a possible takeover. Robinhood’s CEO Vlad Tenev and CCO Baiju Bhatt are reported to have over 50% of the voting power. During the time, Bankman-Fried told Cointelegraph he had no plans to alter or exert control over Robinhood, but his purchase reflected his opinion that Robinhood was an “attractive investment.”

Robinhood’s Gamestop Controversy Lead to User Fall in US, UK & India & $392 Million Deficit

The Verge reported in April that Robinhood had a $392 million first-quarter deficit. The company’s sales for the third quarter decreased by 43% to $299 million from the same period last year, and the number of monthly active users fell. There was also a report that 9% of the company’s workers were let go during that month due to a sudden increase in staff that resulted in job overlaps.

Meanwhile, according to a Bloomberg story citing a report from top Democratic members of a key congressional committee, Robinhood faced a more dire situation at the height of last year’s meme-stock frenzy than executives at the online brokerage were willing to admit. The staff of the House Financial Services Committee determined on Friday that the online brokerage was seriously threatened by irrational trading in GameStop Corp. and AMC Entertainment Holdings Inc. Only a waiver from its clearinghouse prevented Robinhood from defaulting on its regulatory collateral obligations in late January 2021.

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Chris Munch

Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.