Crypto-friendly app Robinhood drops 8% on the first day of listing on Nasdaq

The share price of Robinhood, a cryptocurrency-friendly trading app, fell more than 8% in the Nasdaq IPO on Thursday, marking one of its largest initial public offerings (IPOs).

Robinhood’s HOOD stock plunged 8.4% from $38 to $34.82 at the company’s first trading day’s IPO price on July 29. The company was listed on the Nasdaq at a valuation of 32 billion U.S. dollars. After the HOOD stock closed below 35 U.S. dollars, its market value fell to 29 billion U.S. dollars.

According to data compiled by Bloomberg, the company’s first trading day mark Among the 51 companies in the United States that raised as much or more cash as Robinhood, this was the worst debut ever. According to reports, the company regarded the 2007 IPO of the MF Global Holdings brokerage company as the worst IPO among eligible companies, and the company fell 8.2% on the first day.

According to CNBC, Robin Hood Sell 52.4 million shares, financing nearly 2 billion US dollars, co-founder Vlad Tenev And Baiju Bhatt each sold approximately US$50 million worth of stock. Unlike a traditional IPO with a six-month lock-up period, Robinhood will allow its employees to sell 15% of its shares immediately after the initial public offering. According to reports, investors will be able to give away another 15% in three months.

Comment on Robinhood’s public market debut, CEO Tenev emphasize The mission of the company was to democratize finance for all. “We created a mobile-first product that does not charge commissions or require a minimum account limit. We did not create Robinhood for the rich or those with decades of experience,” he pointed out. Tenev promised that Robinhood will “stay the same” and continue to focus on its customers as the company moves forward as a public company.

related: Robinhood introduced a feature designed to protect investors from crypto fluctuations

Robinhood was launched in 2013 and became widely known in the cryptocurrency community after the company was founded Commenced trading of major cryptocurrencies Like Bitcoin (Bitcoin) And ether (Ethereum) In February 2018.The company’s cryptocurrency-focused sector has achieved significant growth this year Six-fold growth in the first quarter Compared with the previous quarter.

Although Robinhood has experienced significant growth in 2021, the company has been facing some controversy and Increased attention from U.S. regulators End of this year GameStop trading is suspended In January. In April, Massachusetts Securities Regulatory Agency Attempt to revoke Robinhood’s broker-dealer license, Claiming that the company provides services to customers in countries with little or no investment experience.