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Investor-focused social media firm Stocktwits rolls out crypto trading -Breaking

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© Reuters. FILEPHOTO : FILEPHOTO : The illustration below shows Bitcoin representations. This picture was taken in March 2020. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo

By Medha Singh

(Reuters) – Stocktwits.com was at the center of the retail trading mania last year and launched a new crypto trading platform. The site aims to take advantage of growing interest in digital tokens such as bitcoin.

Stocktwits along with Reddit’s r/wallstreetbets was one of the many online message boards used last year by an army retail traders to drive massive gains in meme stock GameStop (NYSE) and AMC. This drove bearish hedge fund billions into debt.

Stocktwits is a website that has six million members and offers its users the possibility to publicly trade or share their portfolios.

The popularity of cryptocurrencies grew tremendously last year. Bitcoin reached a peak value of $69,000 in November. This was because risk-on investors were looking for different asset classes in an overflowing market. However, the currency’s price has almost halved since then due to inflation fears and concerns about central bank rate increases.

New York-based company announced it was partnering with crypto exchange FTX US. Its initial round of funding raised $8 billion.

Rishi Khanna (CEO of Stocktwits) stated that crypto “is the first leg” but it is not where they stop.

Company plans to start U.S. equity trading as soon as possible. Trading in stock options and crypto derivatives will be available.

Stocktwits members use a cashtag — a dollar sign before a stock ticker — to share their stock tips or ideas related to a company. To aggregate sentiment, the social media company analyzes messages and posts around each ticker and lists the top-rated stocks.

The company’s new feature introduces a transaction-based revenue model, which would add to its primary revenue stream on the social media side — advertising, Khanna said.

Stocktwits currently has investors such as Alameda Research Ventures (ffVC), Foundry Groups, Social Leverage and Times Bridges.

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