Nameless sources inside digital alternate Robinhood stated that its plans for preliminary public providing (IPO) have been placed on maintain amid the fallout of the GameStop saga, in accordance 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 immediately. 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 immediately,” wrote Gasparino.
Lack of confidence
In response to a recent survey carried out on nameless community Blind, 83% out of 8,750 surveyed professionals suppose that Robinhood has certainly “screwed its IPO.”
As CryptoSlate reported, Reddit group WallStreetBets has despatched big 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 large gamers from Wall Avenue suffered big losses since they had been betting on the inventory’s value happening—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 said not too long ago that it “will intently evaluate actions taken by regulated entities which will drawback buyers or in any other case unduly inhibit their means to commerce sure securities.”
Whereas Robinhood CEO Vlad Tenev later said that halting GME purchases “was a clearinghouse choice, and it was simply primarily based on the capital necessities,” it seems to be like a minimum of some irreparable harm to the platform’s status has already been performed nonetheless.
Bracing for intense scrutiny
In the meantime, in accordance with Gasparino, the SEC isn’t the one company that determined to evaluate the GameStop saga. The US Congress is reportedly planning to suggest some restrictions on hedge funds buying and selling, together with brief promoting, in response to the GameStop incident.
BREAKING: Hedge fund execs inform @FoxBusiness theyre bracing for intense congressional scrutiny, potential restrictions on buying and selling comparable to brief 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, potential restrictions on buying and selling comparable to brief 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 these days as effectively.
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