Nasdaq Stops Robinhood Trading 3 Times Amid Volatile Trading Window

Nasdaq stops Robinhood trading three times duirng the volatile trading window as the platform reported the same four-letter code three times this morning as we are reading more in our latest crypto news.

The code stands for Volatility Trading Pause and means that the stock $HODD cannot be traded because of a serious rise or fall in prices. In Robinhood’s case, the reason was because of two massive surges after the Nasdaq opened today. HOOD shot up from $54.45 to $65.60 before teh first halt started and after a ten minute pause, the stock increased again to $78 which halted the trading again. Over the past five days, hOOD has increased more than 109.45% and it is now trading at $62.98.

$HOOD pic.twitter.com/cAzKBFppUb

— Sven Henrich (@NorthmanTrader) August 4, 2021

The bullish price action is in contrast to the market debut and after 15 minutes of trading, HOOD already dropped by 9% which is a bleak start to what it has been a breakout year for the app. Facing COVID lockdowns and stimulus checks, the retail ivnestors turned to Robinhood throughtout this and past year and it became the weapon for Redditors as they launched meme stocks in AMC theaters, GameStop, Bed Bath and Beyond among ohters.

Robinhood offers an array of crypto for similar activities including brand names like Ethereum, Doge and bitcoin. The betting mania reached a pitch in January when Robinhood halted trading on these stocks and cryptocurenices. A spokesperson for the company said that Nasdaq stops Robinhood trading to the volatily just as he said when the platform halted trading on these stocks and crypto:

“due to extraordinary market conditions, we’ve temporarily turned off instant buying power for crypto.”

As recently reported, Before the IPO, Robinhood earmarked 35% of shares for the Robinhood existing customers and in an IPO of this kind, the number is actually under 10%. The allocation fell to 20-25% when Robinhood went public and according to reports, many of the app’ users decided to pass on the offer of the company. Robinhood waived the six-month lockup for employees and allowed them to sell some of the shares right away and some did. The app’s disappointing debut doesn’t determine the future of the company because, with 18 million funded accounts, 9.5 million traded crypto in the app during the first quarter of the year, and Robinhood is still thriving.