Robinhood stocks debuted at $38 on early Tuesday but after 15 minutes of the debut, the stocks crashed by 9% as we can see more in the latest cryptocurrency news today.
The online brokerage company, Robinhood stocks debuted but saw a drop in share price in the 15 minutes after the launch. The initial price was set at $38 which put Robinhood at $32 billion valuations and thanks to the fast recovery, $HOOD is now sitting at $36. Today’s debut is the culmination of a long journey for Robinhood which became the trading app of choice for investors in the past few years. It’s algo gained traction among the traders as an alternative to Coinbase and played a big role in the rise of Dogecoin earlier this year.
The company faced scrutiny over the frequent service blackouts and plenty of controversial business models known as the payment for order flow which critics believe gives retail traders a better deal. A month ago, FINRA fined Robinhood $70 million in a series of outages and communications mishaps which resulted in widespread and major harm suffered by customers.
As recently reported, Robinhood held a roadshow before its IPO on Thursday and the company said that it had invested in crypto staking, lending, and wallet services. In addition to the announcement of the crypto wallet, the trading app Robinhood hints at the launch of crypto staking and lending services. At the company’s roadshow that was broadcast online a day ahead of its IPO, the CFO Jason Warcnik said that the platform is making a lot of investment in things that customers want like lending, staking and wallets.
The Melo Park-based trading app company now allows customers to buy and sell crypto but traders cannot earn interest on their holdings or move crypto to the external wallets. Robinhood said it will offer a new wallet as soon as possible and the executives repeated this promise a day ago but didn’t provide a launch date. Earlier this month, a spokesperson for the company said that the company’s wallet will interface with decentralized finance protocols which could explain Warnick’s reference to lending as it is a very popular service among DeFi protocols. The company will go public through an IPO and the shares are expected to sell at around $40 under the HOOD ticker.
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