Nameless sources inside digital trade Robinhood stated that its plans for preliminary public providing (IPO) have been placed on maintain amid the fallout of the GameStop saga, in keeping with Fox Enterprise Community senior correspondent Charles Gasparino.
SCOOP: Ppl inside @RobinhoodApp inform @FoxBusiness plans for an IPO are on maintain to give attention to surviving the present drama over buying and selling of shares and settlement points. Execs say they’ve entry to much more capital than further quantities raised at present. Extra @TeamCavuto 1230pm
— Charles Gasparino (@CGasparino) February 1, 2021
“Ppl inside @RobinhoodApp inform @FoxBusiness plans for an IPO are on maintain to give attention to surviving the present drama over buying and selling of shares and settlement points. Execs say they’ve entry to much more capital than further quantities raised at present,” wrote Gasparino.
Lack of confidence
In line with a recent survey performed on nameless community Blind, 83% out of 8,750 surveyed professionals assume that Robinhood has certainly “screwed its IPO.”
As CryptoSlate reported, Reddit group WallStreetBets has despatched enormous ripples internationally of finance when it managed to pump the declining—and closely shorted by hedge funds—inventory of video video games retail community GameStop (GME). Because of this, a number of massive gamers from Wall Avenue suffered enormous losses since they had been betting on the inventory’s value taking place—not up.
Subsequently, Robinhood drew the ire of each most of the people and politicians alike when it restricted retail merchants from guying GME inventory amid the rally. The US Securities and Alternate Fee (SEC) has already acknowledged lately that it “will intently overview actions taken by regulated entities which will drawback traders or in any other case unduly inhibit their potential to commerce sure securities.”
Whereas Robinhood CEO Vlad Tenev later acknowledged that halting GME purchases “was a clearinghouse resolution, and it was simply based mostly on the capital necessities,” it appears to be like like at the least some irreparable injury to the platform’s status has already been finished nonetheless.
Bracing for intense scrutiny
In the meantime, in keeping with Gasparino, the SEC just isn’t the one company that determined to overview the GameStop saga. The US Congress is reportedly planning to suggest some restrictions on hedge funds buying and selling, together with quick promoting, in response to the GameStop incident.
BREAKING: Hedge fund execs inform @FoxBusiness theyre bracing for intense congressional scrutiny, doable restrictions on buying and selling similar to quick promoting amid $GME–@Reddit–@RobinhoodApp frenzy. Hedge fund commerce teams gearing up and plan to foyer Congress. w Extra 330pm @LizClaman
— Charles Gasparino (@CGasparino) February 2, 2021
“Hedge fund execs inform @FoxBusiness they’re bracing for intense congressional scrutiny, doable restrictions on buying and selling similar to quick promoting amid [email protected]@RobinhoodApp frenzy,” Gasparino famous, including, “Hedge fund commerce teams gearing up and plan to foyer Congress.”
On the brilliant facet, Robinhood halting GME trades has seemingly led to DeFi and crypto recognition and decentralized exchanges’ tokens have been booming currently as nicely.
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