- Billionaire CEO exposes link between cryptos and stocks.
- Also, he said people are more interested in trading both stocks and cryptos.
When the bitcoin price jumped in May, some stocks also soared. This includes Tesla, GameStop, and AMC. As a result, the likes of Facebook have also grown as investors pile into tech companies.
Following this, Bankman-Fried said in the outcome of trading restrictions placed on some stocks in an attempt to calm markets, “hundreds of millions of dollars” rolled into meme-based crypto Dogecoin. The billionaire is the one who predicted a “convergence” between “crypto and the mainstream.”
Sam Bankman-Fried, the CEO and founder of FTX, said,
There are tons and tons of people who have an interest in trading crypto and also have an interest in trading stocks. The moment that many brokers, including Robinhood, restricted buying of GameStop, like literally that hour hundred of millions of dollars flowed into Dogecoin. And it was just a solid signal that it’s the same people.
More so, the CEO statement relates to the Robinhood restriction on GameStop stock back in January. The restriction was a result of internet users who cooperated against hedge fund short-sellers. The short-sellers had bet the GameStop price would drop.
Bankman-Fried added that these same people who were buying GameStop were buying Dogecoin.
“And I think, frankly, the same people who were buying Tesla and Facebook were buying bitcoin and ethereum,” he said.
The billionaire supported his statement with Robinhood transaction-based revenue. The firm revealed that 17% of its transaction-based revenue came from cryptos in the first 3 months of the year. More so, 34% of that came from Dogecoin alone.
In addition, Bankman-Fried said he thinks that we see more and more merging as crypto gets closer to the mainstream, the mainstream gets closer and closer to crypto. Also, he said people are more interested “in trading both stocks and crypto.”