FTX is not going to acquire popular trading app that causes mild plunge of its stock
In contrast to previous reports, FTX does not have a plan to buy American trading platform Robinhood, which previously caused a short-term rally on the company’s stock, HOOD.
Sam Bankman-Fried stated that FTX has no talks going on about acquiring the company or any part of its stock. According to premarket data, HOOD will start the trading day at $8.78 per stock. Unfortunately, we might see a further plunge as more investors may cause pressure on the asset’s price after the main trading hours open.
Previously, U.Today covered that Bloomberg reported FTX is planning to gain the stock trading app. Reportedly, the acquisition was in the early stages and has not yet been confirmed by any sides of the deal.
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As the article suggested, FTX was thinking about receiving a large share in the company after Robinhood reported a massive drop in the app’s usage and earnings, following the catastrophe on the cryptocurrency market and rapidly dropping popularity of high-risk assets like tech stocks.
Prior to the rebuttal, HOOD rallied by over 11%, showing that investors are bullish on the potential “cryptofication” of the platform in the future.
The crypto exchange’s token, FTT, has shown no unusual volatility, as the potential purchase would not have affected the performance of the platform in any way. Generally, the token follows macro trends on the cryptocurrency market and loses 46% of its value in the last few months as the digital assets industry remains under heavy pressure.
