Why?

A cryptocurrency exchange innovator buys part of a stock exchange innovator or perhaps put another way, a Web 3.0 project buys a share of a Web 2.0 and I ask Why?

Source

First, I answer What?

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

So FTX Exchange, a innovative cryptocurrency exchange, and part of the Web 3.0 revolution buys a 8% stake in Robin Hood an innovative Stock Exchange, and perhaps accurately described as part of Web 2.0. I read the articles and listened to the commentary and I think the reason is numbers.

Second, I speculate as to Why?

Consider this

• An estimated 4 million to 20 million unique accounts are involved in decentralized finance and cryptocurrency. Which is admittedly a big range, but accurate numbers are surprisingly hard to come by in cryptocurrency, as most accounts are anonymous. So the true number of unique individual crypto wallets is hard to estimate.
• This number, while large, is far less then one tenth of 1% of the worlds population.
• ‘So adoption is very, very far from being widespread in global terms.
• If your involved with decentralized finance congratulations, your a part of the one percent.
• Robinhood has 17.3 million active monthly users.
• So RobinHood therefore potentially has the same number of monthly users as all of the users in the world, involved in decentralized finance.
• And equally important it is growing exponentially. So in ten years it could have the same number of active daily users as all the wallets owning Bitcoin, an estimated 114 million.
• Consider that 114 million monthly users is equivalent to a country which would be about the 4th or 5th largest country in the world.

Now I have got your attention.

• I am speculating that the owner of FTX, Sam Bankman-Fried, who describes himself as a numbers guy, and as someone who wants to have a positive impact on the world, is interested in converting some of RobinHood stock investors into cryptocurrency investors.
• ‘If this happens in ten years the same enthusiastic, motivated stock investors who beat the GameStop Shorters could be pumping decentralized finance to all time highs of total value locked, and literally hundreds of millions of people could be making money in decentralized finance and achieving financial independence.
• ‘I would call that leaving a positive mark on the world.
• What do you think?

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@shortsegments

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