Robinhood sets out to acquire Bitstamp

Robinhood Markets has announced the acquisition of Bitstamp, the leading UK-based regulated crypto exchange, for $200 million. The move is part of Robinhood’s strategy to expand its crypto services outside the US and become a full-fledged financial services provider, competing with giants like Coinbase and Binance. The acquisition is expected to be completed in the first half of 2025 and comes amid a period of rapid growth for Robinhood’s crypto division, despite regulatory challenges in the US.

Meanwhile, Bitcoin ticked higher despite global equity indices dropping after stronger-than-expected US employment data. The US Labor Department reported that the unemployment rate increased to 4.0% for the first time since January 2022, while non-farm payrolls increased by 272,000 jobs last month, surpassing economists’ forecasts. The strong labor market indicators suggest that inflationary pressures might persist, making the US Federal Reserve more cautious about ending its higher-for-longer interest rate policy.

Back to the wild side, the Solana-based meme coin GameStop (GME) skyrocketed 94% and became the largest gainer in the last 24 hours, fueled by the notification of a livestream scheduled by notorious retail trader RoaringKitty, set to happen tomorrow. The sharp rise in GME and related tokens like Roaring Kitty (KITTY) and Deep F*cking Value (DFV) has raised the total market cap of meme coins deployed on the Solana blockchain to nearly $10 billion, surpassing the investment portfolios of firms such as OKX Ventures and Sequoia Capital.

Today’s Newsletter

• Robinhood inks $200 million deal to acquire Bitstamp
• Bitcoin rebounds from drop with equity indices
• GME meme coin skyrockets 97% following Roaring Kitty livestream announcement

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BUSINESS

Robinhood inks $200 million deal to acquire Bitstamp

With the Bitstamp acquisition, Robinhood aims to enhance its users’ trading experience while maintaining a commitment to compliance, security, and customer-centricity. The move will also allow Robinhood to expand its footprint outside the US and welcome institutional customers to its ecosystem.

However, Robinhood Crypto is facing regulatory challenges in the US, having received a Wells Notice from the SEC last month. The SEC has alleged that Robinhood is operating an unregistered exchange by allowing the sale of certain crypto tokens considered investment securities. Despite the ongoing challenges, Robinhood has expressed its commitment to maintaining a cooperative relationship with regulators. [ cryptobriefing ]

BITCOIN

Bitcoin rebounds from drop with equity indices as strong US jobs data poses challenge to Fed rate cuts

The stronger-than-expected employment data hit risk assets, with major European and UK equity indices trading in the red. The regional Stoxx 600 index in Europe retraced yesterday’s gains and dropped 0.35%, while in New York, the Dow Jones Industrial Average, SP 500, and NASDAQ all opened lower.

The European Central Bank (ECB) cut interest rates as expected on Thursday, lowering its key rate to 3.75% from a record high of 4%. The move comes after the Bank of Canada (BoC) lowered its policy rate to 4.75% on Wednesday, making Canada the first G7 country to loosen monetary policy in the current cycle, followed by the ECB. [ theblock ]

MEME COINS

GME meme coin skyrockets 97% following RoaringKitty livestream announcement

Keith Gill, known as RoaringKitty, is one of the main figures behind the GameStop stock price leap in 2020. The livestream notification also prompted a daily growth of 47.5% in GME stock, with Gill’s position now worth over $586 million.

The recent price surges in GME-related tokens based on Solana have highlighted the growing influence of meme coins in the cryptocurrency market. The total market cap of meme coins deployed on the Solana blockchain has now surpassed the investment portfolios of prominent venture capital firms, demonstrating the increasing mainstream appeal and potential of these community-driven digital assets. [ cryptobriefing ]

Other News

TRON DAO at Consensus 2024 with exclusive Whale Night event

Base meme coins record double-digit gains and top other crypto sectors

Bitcoin could hit $150K by 2024-end if Donald Trump is re-elected: Standard Chartered. [coindesk]

VanEck forecasts Ethereum to reach up to $154,000 by 2030

Bitcoin open interest goes meteoric, traders warn of a ‘whipsaw.’ [cointelegraph]

ECB rate cut could spur Bitcoin and stablecoin growth in Eurozone, experts highlight

Kraken eyes over $100M in pre-IPO funding

CoinGecko confirms email provider data breach, over 23,000 phishing emails sent. [cointelegraph]

US Bitcoin ETFs attract record inflows with new all-time high in sight

Bybit opens registration to Chinese nationals overseas. [cointelegraph]

US crypto regulations moving against CBDCs and non-compliant stables like Tether: JPMorgan. [coindesk]

108 ex-prosecutors echo calls to rescue Binance exec in Nigeria. [cointelegraph]

Next Week’s Token Unlocks

• APT is looking at an unlock of $106M, which translates to a 2.6% supply increase, alongside a market cap of $4.1B.

• IMX’s upcoming unlock of $58M will increase the supply by 1.7%, with a market cap of $3.4B.

• DYDX has an upcoming unlock of $33M, resulting in a 0.6% supply increase. DYDX has a market cap of $599M

Vince Diego