Binances refusal to buy FTX crypto exchange hit Robinhood and
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Binance’s refusal to buy FTX crypto exchange hit Robinhood and Coinbase

Binance Holdings Ltd., which owns the largest cryptocurrency exchange Binance, refused to take over a competitor in the face of FTX, bringing the company to the brink of complete collapse. Against this backdrop, the value of shares of some other big players in the cryptocurrency market has dropped significantly.

    Image Source: Kanchanara / unsplash.com

Image Source: Kanchanara / unsplash.com

Robinhood Markets Inc. stock prices down 14%. Shares in Coinbase Global Inc. fell 9.5% to hit an all-time low, resulting in a loss of about a fifth of the company’s market cap. According to Bloomberg, a total of $10 billion worth of shares in companies related to the cryptocurrency market have been sold.

Binance’s intention to acquire crypto exchange FTX was announced earlier this week. It was expected that this would enable the company to overcome the resulting liquidity crisis. According to available data, Binance abandoned the acquisition of a competitor after conducting an assessment of FTX’s financial health. “Originally we were hoping to assist FTX clients in providing liquidity, but the issues are beyond our control and ability to assist.”‘ Binance said in a statement.

Against this background, the stock prices of companies related to the cryptocurrency market and some digital currencies also fell. Bitcoin price has fallen to a two-year low. At the time of writing, one bitcoin was worth about $16,312. MicroStrategy Inc. shares fell 20% to their lowest level in four months. Securities of Riot Blockchain Inc. fell in price by 8.1%, Silvergate Capital Group – by 12%. Shares of Galaxy Digital Holdings Ltd., which announced a $76.8 million investment in cryptocurrency exchange FTX, fell 16% to their lowest level since October 2020.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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