Stocktwits.com, a social media site at the center of last year’s meme stock mania, is launching a cryptocurrency trading platform.
Based in New York, Stocktwits.com announced that it is partnering with cryptocurrency exchange FTX US to launch a crypto trading platform. Valued at $8 billion following its initial funding round last month, FTX US, a New York-based cryptocurrency exchange is also looking to expand its platform to provide other offerings.
“While crypto is the first leg, it’s not where we stop,” said Stocktwits CEO Rishi Khanna. By early next quarter, the company plans to launch U.S. equities trading, and eventually trading in stock options, crypto derivatives and other asset classes.
Stocktwits mania
In addition to Reddit’s r/wallstreetbets, the online message boards of Stocktwits played a major role in facilitating a frenzy of retail traders to boost such what became meme stocks, such as GameStop and AMC. Currently, with over six million registered users, it is offering its customers the option to make their trades or portfolio visible to the public.
Stocktwits users utilize a dollar sign before a stock ticker, or ‘cashtag,’ in order to share stock tips or ideas about a company. As a social media firm, the company then analyzes posts and message volumes regarding the ticker, aggregating sentiment. The most trending stocks then get featured on the platform.
According to Khanna, the new feature introduces a transaction-based revenue model, which then adds to its primary revenue stream on the social media side, advertising. Primary investors include Alameda Research Ventures, ffVC, Foundry Group, Social Leverage, Times Bridge, and True Ventures.
GameStop spike
Today, GameStop announced its partnership with Australian blockchain startup, Immutable X to develop and launch its NFT marketplace with a $100M fund.
Back in May, the video game conglomerate first announced its foray into NFTs, launching a 20+ person department to work on an NFT marketplace last month, causing shares to spike by 30%. GameStop said it would also be seeking cryptocurrency partnerships to help boost the marketplace.
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