(Bloomberg) -- Shares of Robinhood Markets Inc. and Coinbase Global Inc. took another beating Wednesday as the meltdown in crypto markets rattled investors amid doubts about the pending sale of FTX.com to Binance Holdings Ltd.
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Robinhood tanked as much as 13%, while Coinbase dropped 12% -- extending this week’s wipeout to more than one-fifth of their market capitalizations. The selloff in crypto-linked equities erased at least $10 billion in value.
Binance executives are seen as increasingly unlikely to follow through on the takeover of FTX which both companies had announced Tuesday -- a deal that was meant to “help cover the liquidity crunch” at Sam Bankman-Fried’s troubled crypto exchange.
Read more: Crypto Markets Extend Losses as Binance Seen Balking at Takeover
Robinhood was seen as a potential target for FTX after people with knowledge of the matter told Bloomberg News in June that FTX was said to have been exploring a possible acquisition of the company. Coinbase’s slump is a reminder of investor caution over the crypto industry as the Binance-FTX deal puts a spotlight on the challenges facing its longevity.
Other cryptocurrency-linked stocks extended losses Wednesday as Bitcoin fell as much as 10% to a two-year amid investor jitters. MicroStrategy Inc. sank as much as 16% and Riot Blockchain Inc. lost 9%, while Silvergate Capital Corp. tumbled as much as 14%. Galaxy Digital Holdings Ltd. tumbled 17% to the lowest since October 2020
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