If Elon Musk can buy Twitter, can Sam Bankman-Fried buy Robinhood?

almost 2 years ago

Today I look at this possibility, as Billionaire Sam Bankman-Fried recently bought a 7.6% stake in Robinhood, for 648 million dollars, causing a 20% jump in price. I look at who is Sam Bankman-Fried, how much money does he have, and why would he want to buy Robinhood?

If Elon Musk can buy Twitter, can Sam-Bankman-Fried buy Robinhood?

The Newstory recapped:

Sam Bankman-Fried, the 30-year-old billionaire who founded the cryptocurrency exchange FTX, bought a 7.6% stake in Robinhood Markets Inc., HOOD 24.88% according to a Thursday regulatory filing. He paid about $648 million for the stake, which would make him the trading app’s third-largest shareholder. Mr. Bankman-Fried’s shares are worth around $482 million based on Thursday’s closing price of $8.56. Shares of Robinhood jumped as much as 42% in after-hours trading.

Source Forbes magazine.

So I ask the questions: who, what, when...

Who is Sam Bankman-Fried?
How much is he worth?
What is his company FTX?
How much is it worth?
And can he afford to buy Robinhood?
What is Robinhood?
Why would he buy it?

Who is Sam Bankman-Fried

Sam Bankman-Fried is the founder of FTX cryptocurrency exchange, a cryptocurrency exchange innovator, a billionaire, whose life goal is to make a positive contribution to humanity and he plans to leave his fortune to mankind. He is the majority owner of FTX cryptocurrency echange, which is one of the largest crytocurrency exchanges.

How much is he worth?

Sam Bankman-Fried is ranked 60th on the 2022 Forbes Billionaires List with a net worth of US$24 billion, according to Wilkapedia and Forbes Magazine.

What is his company FTX?

FTX exchange and its U.S. operations hit a combined $40 billion valuation in January 2022.According to Forbes Magazine. Source

Who or what is Robinhood?

Robinhood is one of the most popular desktop and mobile stock purchasing applications for retail stock, bond, and crytocurrency investors, in the world. Yes, in the world.
Robinhood has 17.3 million active monthly users. Now to put that number in perspective, an estimated 4 million to 10 million unique accounts are involved in decentralized finance and cryptocurrency. So RobinHood may have a greater number of monthly users then all of the people in the world involved in decentralized finance.
This is an important point because Sam Bankman-Fried has described decentralized finance as one of the greatest tools for financial independence the world has ever seen. So if he could lead a revolution whereby the largest Retail Stock organization in the world introduced it's users to decentralized finance he would make a significant impact on the mass adoption of decentralized finance and help millions of people achieve financial independence.

Why would he buy it?

I think this purchase provides a perfect fusion of the worlds largest stock purchasing application, RobinHood and one of the world's largest cryptocurrency exchanges, FTX, and represents a fusion of two industry leaders known for innovation.
FTX has a reputation for innovation in the cryptocurrency derivative trading area and Robinhood has a reputation for innovation in the stock trading arena.
In addition Robinhood just introduced a revolutionary product the custodial cryptocurrency wallet, the first such wallet on a stock trading application site of Robinhoods size.
These events are historic in their size of impact.
If a small stock trading application creates innovation it's marvelous, but only for a very small number of users. But when an application with a huge user base of 17 million introduces a huge techniological innovation it's impact is much greater.
When you combine two giants in user base and both have a ecord for innovation, you have a historic event which can create change.

A Big thing just happened.

Did you feel that tremor?
I think it was a aftershock of the tremor that this purchase caused in the cryptocurrency universe, the cryptoverse, or metaverse as it is sometimes called.