- $HOOD skyrocketed as high as $9.72 following report of acquisition.
- FTX’s token (FTT) drops by 2% on the day.
LAGOS (CoinChapter.com) — Shares of stock trading app Robinhood surged significantly today following reports that cryptocurrency exchange, FTX, is looking to acquire the company.
According to reports, weeks after disclosing his stake in Robinhood, FTX CEO Sam Bankman-Fried now wants to buy the company. Notably, Bankman-Fried currently owns a 7.6% stake in Robinhood ($650 million), according to filings by the Securities and Exchange Commission.
Shares of Robinhood spiked after the news of the proposed acquisition, surging above 15% before it was halted for trading. $HOOD began the day at $8.12 and skyrocketed as high as $9.72 before the pause. Notably, the stock held on to most of its gains after trading resumed hours later.
A familiar source on FTX team disclosed that the exchange was deliberating on how to fully acquire Robinhood. Although the source noted that Robinhood is yet to receive a formal takeover offer, and FTX hasn’t fully decided.
Additionally, it is worth noting that FTX is one of the largest crypto trading exchanges in the world. It rivals the likes of Coinbase and Binance and has recently been making massive expansion moves in recent weeks.
FTX’s Token (FTT) Drops Despite News Of Proposed Acquisition
Meanwhile, Bankman-Fried plan to acquire Robinhood did not have the same reaction on his company’s native token as FTT dropped on the day. According to data from, Coingecko FTX token slumped by almost 2% on the day to trade at $26.86.
The token market cap has also dropped significantly in the last 7 days losing over $500 million. FTT market cap currently stands at $3.4 billion with a 24-hour trading volume of $75.8 million. It also has a circulating supply of 140 million FTT coins and a total supply of 331 million.
FTX Trading Volume Surpasses Coinbase
In a parallel development, FTX last month overtook Coinbase as the second-largest centralized crypto exchange in terms of market share.
According to data from Coingecko, the leading exchange in the market is still Binance, which commanded a whopping 64.1% share. However, FTX comes in second place with 10.8%, replacing Coinbase which commands 9.6% during the monthly period.
Coinbase recently faced major turbulence, posting a net loss of $430 million in the first quarter of the year. Additionally, its shares in the stock market also slumped by around 36% in May. The company has fingered current market conditions as a catalyst for its most recent decline.
Notably, after the top three centralized exchanges, others include Kraken (3.7%), Bitfinex (2.6%), and LMAX Digital (2.6%). Additionally, it is worth noting that the entire crypto trading volume increased by 19.6% in May, recording a total of $830.5 billion.