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Robinhood gaining crypto market share after FTX collapse, CEO says

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Robinhood gaining crypto market share after FTX collapse, CEO says

Robinhood has seen market share increase in the weeks following FTX’s collapse, CEO Vlad Tenev said. The company had no exposure to the now failed exchange.

Tenev also said that the 7.6% stake of Robinhood owned by FTX founder Sam Bankman-Fried does not indicate a formal relationship.

“The reality,” he said, is that “it’s a public stock that anyone can buy.” The notion that this indicates a formal partnership is “just inaccurate.”

Tenev suggested that the events surrounding FTX’s downfall are an opportunity for the firm.

“These events weed out the weaker companies that have invested less in risk management and compliance,” Tenev said during a conference.

The comments come amid a rough time for the industry. FTX filed for Chapter 11 bankruptcy protection on Nov. 11, followed by BlockFi, and lender Genesis Global Capital is on the brink. Crypto prices are down from record highs last year and skepticism about the sector is growing.

That said, Robinhood plans to expand its crypto wallet so that it will be available worldwide users in the near future, Tenev said, showing a continued commitment to the industry.

“Crypto is here to stay,” the CEO said.

The beta for Robinhood’s self-custodial wallet was launched in September, using Polygon as its first blockchain network. 

According to a company blog post, the waitlist for Robinhood’s wallet is more than 1 million people globally.


© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Source – Theblockcrypto.com

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