American “people’s broker” Robinhood didn’t go to the IPO very well, but then its shares skyrocketed. Why is this interesting for cryptocurrency users?
The Robinhood trading platform is known for being one of the first US brokers to connect cryptocurrency support. It was on her that the Wall Street Bets movement began a war with large funds. And now the shares of the broker itself have become the subject of exchange games.
Robinhood went public on July 29, 2021, and its placement is considered one of the most unsuccessful this year, since after the start of trading, the price dropped from $ 38 to $ 33.3 in a few days. However, on August 4, the price of the paper soared by 123% of the placement price, to $ 85. The roller coaster did not end there: the next day the price dropped to $ 50. What caused this excitement around the stock, as well as the subsequent fall? How interesting are HOOD stocks to buy now, and how can cryptocurrency users participate in the process?
Why did Robinhood’s stock go up?
Many have already forgotten about the popular movement of private investors Wall Street Bets (WSB) from the American Reddit forum. It is known for helping to skyrocket GameStop, AMC and other low-liquid stocks that have been pushed by large hedge funds. This movement became popular for the simple reason that ordinary members of the forum challenged the “bigwigs” from Wall Street and were able to defeat, almost bankrupt, the hedge fund Melvin Capital. And, importantly, the Reddit activists used the Robinhood trading app.
Now the IPO of Robinhood has become a popular topic about financial markets on Reddit, in which the WSB movement decided to participate in gratitude. A huge number of private investors began to buy HOOD shares, due to which such a rapid growth took place. The crowd again turned against professional investors and won again.
Should you buy stocks after a pump & dump?
As expected, a fall followed after a dizzying takeoff. Some investors took profits and left the market. However, if you pay attention to the so-called “pump” of shares of GameStop and AMC, the movement of WSB pulled these securities up for a long time.
For example, GME shares rose for the first time between January 13 and 28, when the price soared from $ 20 to $ 478. Further, the collapse followed to $ 38. The second assault on GameStop took place from February 24 to March 10. The stock rose $ 300, from $ 44 to $ 344, before falling again to $ 116. And finally, for the third time, the price rose from May 11 to June 8, from $ 135 to $ 342.
The scenario with AMC shares developed in a similar way. For the first time, the shares of the cinema chain grew from January 25 to 27. Then the price soared from $ 4 to $ 20, followed by a collapse to $ 5. The second time AMC securities rose from May 24 to June 3, then the growth started at $ 12 and ended at $ 75.
As you can see, the rise in stocks supported by the Wall Street Beats movement has occurred repeatedly, for quite a long time and strongly. GME shares rose 24 times at their peak, AMC shares 6 times. GME shares rose in price for an average of 2 weeks, AMC shares for 3 and 10 days. Robinhood grew in value for only 2 days and more than doubled. It is likely that Robinhood shares still have upside potential, especially in the context of support from the WSB movement.
Robinhood shares for cryptocurrency?
Investors from the CIS countries can find it difficult to buy shares of companies traded on the American NASDAQ stock exchange. Especially if they hold a significant portion of the portfolio in cryptocurrencies. It is difficult to quickly convert such reserves into fiat for buying stocks without significant commission. However, there is an alternative option.
Regulated tokenized asset cryptocurrency exchange Currency.com has listed Robinhood tokenized shares for everyone to participate in and benefit from the company’s growth. Robinhood tokenized shares are issued on the Ethereum blockchain (ERC-20) and reflect the real market value of the company’s shares.
Tokens are available for purchase and withdrawal from Currency.com to any cryptocurrency wallet that supports the ERC-20 standard. In addition to buying, selling and storing, the clients of the crypto exchange have the opportunity to trade Robinhood tokenized shares with a leverage of up to 20x. Leveraged trading provides an opportunity to hedge price risks and use capital up to 20 times the size of the initial deposit.
In total, more than 2000 tokenized assets are available on Currency.com, including:
Top cryptocurrencies.
Tokenized shares of the world’s largest companies.
Tokenized stock indices.
Tokenized ETFs.
Tokenized currencies.
Tokenized Commodities.
Tokenized bonds.
