Social media site Stocktwits rolls out I Finance crypto trading platform

0, one of the social media sites at the heart of last year’s retail mania, launched a crypto trading platform on Thursday, seeking to capitalize on the growing interest in trading bitcoins and other digital tokens.

Along with Reddit’s r/wallstreetbets, Stocktwits was among online message boards used by an army of retail traders last year to generate huge gains in GameStop and AMC meme stocks, costing funds billions of dollars. bearish speculative.

Stocktwits, which has more than six million registered users, said it would offer customers the option to make their trades or wallet public.

Cryptocurrencies rose to immense popularity last year, with bitcoin hitting a high of $69,000 in November as venture investors sought out different asset classes in a liquidity-flooded market, despite the currency having nearly halved in value since then due to inflation fears and aggressiveness concerns. rate hikes by central banks.

A representation of cryptocurrencies in this illustration taken January 24, 2022. REUTERS/Dado Ruvic/Illustration

The New York-based company announced its partnership with cryptocurrency exchange FTX US, which was valued at $8 billion in its first funding round last month.

“While crypto is the first step, that’s not where we stop,” said Rishi Khanna, chief executive of Stocktwits.

The company plans to launch trading in US equities by the start of the next quarter, with trading in equity options, crypto derivatives and other asset classes to come.

Stocktwits members use a cashtag – a dollar sign in front of a stock symbol – to share their stock advice or company-related insights. The social media company then analyzes posts and message volumes around the ticker to aggregate sentiment and list the most touted stocks on its platform.

The company’s new feature introduces a transaction-based revenue model, which would be in addition to its primary source of revenue from the social media side – advertising, Khanna said.

Current Stocktwits investors include Alameda Research Ventures, ffVC, Foundry Group, Social Leverage, Times Bridge and True Ventures.

(Reporting by Medha Singh in Bengaluru; Editing by Uttaresh.V)

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