In a thriller about the crypto exchange FTX, Alameda Research and its founder Sam Banksman-Fried, a fallen stock exchange star, make substantial profits. According to its own statements, Robinhood has recorded higher crypto inflows than ever before in the history of its company. After Thursday’s enthusiasm, the trend of the stock continued to rise on Friday as well.
As Robinhood CEO Vlad Tenev announced in a Twitter thread on Thursday, the neo-broker has registered a significant increase in crypto trading volume and high inflows over the past few days. In fact, it is the highest flow ever, Tenev continued.
Over the past few days, we are seeing high trading volume and high crypto inflows. Notably, the past few days have been two of the biggest days for our crypto inflows.
— VLAD (@vladtenev) 10 November 2022
In September, Robinhood released a beta version of its Web3 wallet to the first 10,000 users. However, the sales generated by the company with crypto trading have declined recently. In the third quarter, they fell 12 percent to just $51 million.
Negative effects due to Bankman-Fried’s involvement in Robinhood (Shareholder told) are not expected as per Tenev. According to the CEO of Robinhood, there is no direct affiliation with the crypto exchange or Alameda Research, other than the investment of the FTX founder.
The neo-broker’s stock rose ten per cent on Thursday in euphoria as it turned positive after early losses soon after trading resumed on Friday as well. Papers are currently trading around five percent higher.
Robinhood is a surprising beneficiary of the crypto sector earthquake and the drama surrounding the firms of Bankman-Fried. However, unexpected security isn’t the solution to all neo-brokers’ problems. In the third quarter, crypto accounted for just 14% of total transaction-based revenue. Shareholder also recommends avoiding Robinhood papers.
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