But there can be hope on the horizon.
Bankman-Fried, who runs FTX, a Bahamas-based cryptocurrency exchange startup, said in the filing that he bought the Robinhood shares because he believed they “represent an attractive investment.” He added that his partnership was meant for a passive investment and that he had “no intention of taking any action to change or influence Robinhood at present”.
FTX took the crypto world by storm, It has attracted more than a million users since its launch in 2019, so its founder as a strategic investor in Robinhood can help give the brokerage more credibility, not to mention a lot of money helpers in its settlement.
Privately held FTX recently raised new funds that valued the company at $ 32 billion. Bankman-Fried, who is also the founder of the crypto trading firm Alameda Research, is valued at $ 21.2 billion, according to data tracked by Forbes.
FTX had no further comment on Bankman-Fried’s Robinhood steak. Robinhood issued a statement Thursday regarding its verification Robinhood Communication Team Twitter Feed
It says that “we are doubling down on creating a multi-generational company where customers can create assets for their generation.”
“Of course, we think this is also an attractive investment. We have the best customer base, we’re launching great new products, and we have teams to deliver. Our journey is just beginning,” Robinhood added.
Bankman-Fried’s investment could help get Robinhood back on track. Robinhood, along with cryptocurrency rival Coinbase, has struggled this year due to financial market volatility.
Shares of Coinbase, which sank earlier this week after a poor earnings report and a weak outlook, met with Robinhood on Friday. Coinbase stock was up about 25%. However its shares are still down 30% this week and more than 70% this year.