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- Stock and cryptocurrency trading app Robinhood’s shares have witnessed tremendous volatility in recent days after generating unwelcome headlines with its dismal initial public offering (IPO) debut on Nasdaq last week
- At the app’s first floundering launch for its public sale, this unpopularity prompted a degree of delight among online traders
- Antony Pompliano’s remark alludes to Robinhood’s reputation among retail and crypto investors for suspending trading in GameStop (GME) and other companies earlier this year due to extraordinary retail-driven price volatility
Stock and cryptocurrency trading app Robinhood’s shares have witnessed tremendous volatility in recent days after generating unwelcome headlines with its dismal initial public offering (IPO) debut on Nasdaq last week. The app that has so frequently been the benefactor of frantic meme stock trading started to resemble the newest internet fad in an ironic twist that saw the price of HOOD stocks rise by as much as 82 percent in one day. HOOD has gained 102 percent since its Nasdaq launch on July 29 and is currently trading at $70.39, down somewhat from its recent high of $85. Nasdaq handed the business a dose of its own medicine by stopping trading numerous times in reaction to such extreme volatility and an exponential increase in retail trading volume.
Antony Pompliano’s remark alludes to Robinhood’s reputation among retail and crypto investors for suspending trading in GameStop (GME) and other companies earlier this year due to extraordinary retail-driven price volatility. As Dogecoin (DOGE) soared by 900 percent, it received even more criticism for briefly banning fast deposits for crypto purchases. At the app’s first floundering launch for its public sale, this unpopularity prompted a degree of delight among online traders. Analysts believe that a midweek move by Ark Invest’s Cathie Wood to expand her stake in Robinhood — adding 89,622 shares of HOOD to the 3.15 million shares she already owned in the Ark Fintech Innovation exchange-traded fund — may have sparked the following price turnaround. The hype among ordinary traders online has primarily driven HOOD’s quick, meme stock-like price increases since then.
HOOD was by far the most mentioned stock on the popular subreddit r/Wallstreetbets over the past 24 hours, according to Swaggy Stocks, which tracks the top trending stocks mentioned on the forum, with 2,770 mentions compared to 265 for Tesla (TSLA), 1,960 for the SPDR S&P 500 trust (SPY), and 488 for Moderna (MRNA). Breakout Point, a retail investor mood tracker, has also confirmed that HOOD is the most popular ticker in recent days, based on its aggregate retail popularity methodology, which aggregates across dozens of retail chatter/sentiment sources. Three factors, according to Breakout Point founder Ivan osovi, contributed to HOOD’s transformation from a very hated IPO in the retail world” to meme-like stock, the influence of Wood’s bullish position, some retail investors on the sidelines decided to give it a try, and the resulting, familiar online FOMO.
As previously reported, a series of severe system failures on Robinhood this spring prevented customers from accessing their accounts, prompting traders to join numerous class-action lawsuits filed against the business in the US. After the regulator claimed that the trading platform caused widespread and significant harm to thousands of users and had systemic supervisory failures as early as September 2016, the company paid $57 million in fines to the Financial Industry Regulatory Authority, as well as $12.6 million in restitution to certain customers. Federal and state-level U.S. securities authorities, as well as members of Congress, have questioned the platform’s handling of the Gametop situation.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
