Robinhood, a prominent trading and stocks exchange firm, now leading in cryptocurrency exchanges too planned to make Initial Public Offering (IPO). Under the sightings of the recent cryptocurrency market trend by SEC, Robinhood’s IPO plans are halted for now.
The Postpone of Robinhood IPO
Robinhood Markets Inc is basically an American firm into many sorts of financial services. It’s headquartered in Menlo Park, California. Robinhood initially was started up on trading and exchanges all based upon stocks. Although started up in the year 2015, it slowly started to indulge in trading and exchange, on a commission-free basis for various cryptocurrencies too. Thereby, entering into the crypto industry for the past few years.
In Spite of all the success in its endeavors, Robinhood looked forward to making itself an IPO. Robinhood’s sole goal is to expand the business through IPO for much betterment. Accordingly, it filed for IPO officially on March 23rd, 2021. Furthermore, the firm was confident of offering its IPO live by this month. However, the U.S Securities and Exchange Commission (SEC) as of now has forced Robinhood to postpone its IPO. The SEC’s crucial screening on the company’s cryptocurrency market business has led them to such a situation.
Moreover, the SEC concerns about the recent crypto market crash, still prevailing though. The Crypto market crash now prevailing for nearly more than a month has affected various exchanges profusely. On the contrary, this impacts Robinhood’s business too, thus forcing SEC to make it wait for a time period. Thus, Robinhood’s IPO plans are moved over to next month, under the reviews of the SEC.
Robinhood’s Crypto History
On tasting the success through exchange and stocks, Robinhood entered into the trade and exchange of cryptocurrencies. Moreover, it restricted itself to the trade of prominent cryptocurrencies, like Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE).
Robinhood’s CEO Vlad Tenev put forth the cryptocurrency attributes and operations will be their major focus for this year. Also, he adds the firm has employed many and has so far made a lot of investments towards its cryptocurrency sector. On the other hand, contradicting the fact of increase from $1.7 million to $9.5 million upon its cryptocurrency trading and rise in the number of investors made Robinhood focus on cryptocurrency trading. This spikes to nearly more than six times increase.
Despite all the success, the recent cryptocurrency market fall made it all hard for Robinhood too. Moreover, everything started from Elon Musk’s radical gameplays controlling the Dogecoin and Bitcoin (BTC) market since his Saturday Night Live (SNL). Furthermore, his tweets and decisions upon the Bitcoin (BTC) ban for Tesla products worsened the situation for Robinhood. Ever since then, the users of Robinhood have faced many challenges in trading Dogecoin and Bitcoin on its firm.
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