According to a recent report, FTX is working on ways to buy off Robinhood. Robinhood is a US-based trading platform that gives its users access to stocks and crypto. Sources close to the process were quoted in reports.
The Calm of the First Stage
It looks like the FXT crypto exchange is just at the primary phase of exploration. In that case, FXT has not made a formal offer to Robinhood.
Since FXT is only just exploring, it might refrain from an actual offer, Bloomberg said. The crypto exchange has made considerable news lately. This is a result of its strides in making bailouts available to crypto companies.
The crypto industry is yet to recover from the consequences of Terra’s collapse. The US monetary is also another factor affecting the entire crypto sector. One should not also forget the impact of Three Arrows Capital’s failure.
Companies in the crypto space got negatively impacted by those events. Some of them had to turn to FXT for financial aid.
As it stands, the exchange is ready to place a stake in Voyager and BlockFi. The former had given Three Arrows Capital a loan of $670 million. Voyager has issued a default notice to the company.
As reported earlier, BlockFi investors are trying to raise a counter offer to FXT. They put the figure in view at more than $250 million. It will give shareholders an interest to control and preserving their stakes there.
Is FXT Buying Robinhood to Claim Coinbase’s Market Share?
The crypto community has reacted rapidly to the news surrounding FXT and Robinhood. A lot of people concur that FXT is pushing into the retail market.
Robinhood holds more than $20 billion in assets. Its yearly revenue is also at $1.8 billion, and 3 million users by the end of 2021. These statistics might help FXT expand quickly to a new region dominated by Coinbase.
An analyst with Blockware Solution has said that it is an interesting development to watch. Will Clemente said further that Coinbase has dominated the crypto retail sector. FXT, on the other hand, has dominated the quite elitist investors by being properly regulated.
Clemente went on to say that this could be SBF moving on Coinbase. Observers in the sector would not think this completely out of place.
It is now to be seen if the deals happen. Or at least, if FXT makes a formal offer to Robinhood. Right now, Robinhood shares are reacting positively to the speculative news.
The shares were sold for under $8 before Bloomberg published its report. But they have jumped as high as $12 now.