StockTwits Partners with FTX to Launch Crypto Services
Finance-focused social media platform, StockTwits has taken the industry one step further with launch plans crypto and derivatives trading services.
The platform partners with FTX.US to enable trading. With this new service, StockTwits users will trade cryptos and derivatives directly from the app.
Big day here at Stocktwits 📢
We are excited to share the launch of our fully integrated crypto trading, powered by @FTX_USdirectly in our iOS app!
Update your iOS app and combine the power of our community with a top-notch crypto platform.https://t.co/V0oAyIpaWX
— Stocktwits (@Stocktwits) February 3, 2022
The platform, which was originally a social media app for investors, has been around since 2008. It claimed to have popularized cashtags, i.e. the combination of dollar signs with a stock symbol $GOOGL$TSLA$PIECE OF MONEYetc
It was in the spotlight in 2021 during the short-squeeze frenzy involving AMC and GameStop stocks. With subreddit r/Wallstreetbets, StockTwits helped popularize the stock meme movement last year. The short squeeze from retail investors has led hedge funds to lose billions on short positions.
At that time, StockTwits was one of the discussion platforms for investors. The New York-based company has the tools and data that encourage investors and traders to interact and discuss.
But lately, discussions about crypto have become big. Clearly, the team behind the platform now saw that it could serve more than one purpose.
With 6 million registered users and 5 million monthly active users, the new feature means that millions of retail investors will now have access to crypto.
Eyes Crypto and derivatives trading
It also means that StockTwits joins the list of companies involved in the short squeeze saga that have now entered crypto. Robin Hood, GameStopand CMA have already integrated crypto into their services.
According to the CEO, crypto trading will allow him to better serve users. With “community and data” already in place, “adding execution” completes the production expansion.
The partnership with FTX means StockTwits means the platform will become something of a Robinhood for retail investors.
But its social media features and data analytics make it stand out from other retail platforms. Although he starts with crypto, he intends to later expand into derivatives trading.