What's Going On With Robinhood Markets Stock Today?

Robinhood Markets Inc HOOD shares are trading lower Tuesday amid concerns over the financial standing of cryptocurrency exchange FTX.

FTX CEO Sam Bankman-Fried's Emergent Fidelity Technologies purchased 56,273,469 shares of Robinhood earlier this year. The firm's position represents a 7.6% ownership stake in the company.

What Happened: Speculation surrounding FTX started last week following reports that Bankman-Fried's trading firm Alameda Research held a significant portion of its balance sheet in FTT, the native token of FTX. The crypto market has since grown concerned about FTX's liquidity. 

The FTT token began facing significant selling pressure after Binance CEO Changpeng Zhao said he would offload his FTT holdings on FTX.

Zhao noted that he planned to liquidate his holdings over "recent revelations that have come to light," saying he wouldn't support people who "lobby" against other industry players behind their backs.

In a turn of events Tuesday, Binance agreed to buy FTX. The crypto market is spiraling lower amid Tuesday's developments. Robinhood has continued to expand its crypto offerings in recent months.

Related Link: Binance To Acquire FTX.com As It Faces 'Liquidity Crunch': Here Are The Early Details

HOOD Price Action: Robinhood has a 52-week high of $18.93 and a 52-week low of $6.81.

The stock was down 18.9% at $9.77 at time of publication, according to Benzinga Pro.

Photo: PiggyBank Canada from Flickr.