Shares in hybrid exchange Robinhood have dipped 25% since tensions broke out between Binance’s head Changpeng ‘CZ’ Zhao and FTX head and major Robinhood investor Sam Bankman-Fried (SBF).
The ugly public spat between the two high-profile figureheads culminated in Binance’s pending takeover of its digital asset exchange rival in what has been one of the biggest shakeups in the sector since Mt. Gox’s collapse in 2015.
Until recently, SBF was an avaricious buyer of distressed crypto companies.
After Robinhood – a hybrid trading platform dealing in stock as well crypto – suffered over US$3.7bn in losses throughout 2021, SBF acquired a 7.5% stake in the company.
Now there are fears that he may have to sell his stake as his personal wealth comes under pressure.
Previously worth over 10 billion dollars, SBF has been removed from the Bloomberg Billionaires Index, suggesting that his personal wealth has fallen by at least 90% in recent days.
Speculation of a major disposal has clearly rattled the stock market, with HOOD falling over 9% on Wednesday and over 25% since last Friday.
Perhaps long-term Robinhood investor Cathie Wood of Ark Invest is ready to buy the dip in an over-the-counter deal.
Wood reduced Ark’s HOOD position by nearly 6%, or US$3mln, on Tuesday.
Year to date, Robinhood’s market capitalisation has dropped 52% to less than US$8bn.