Robinhood’s IPO is reportedly on maintain following GameStop drama

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Nameless sources inside digital trade Robinhood mentioned that its plans for preliminary public providing (IPO) have been placed on maintain amid the fallout of the GameStop saga, based on Fox Enterprise Community senior correspondent Charles Gasparino.

“Ppl inside @RobinhoodApp inform @FoxBusiness plans for an IPO are on maintain to concentrate on 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 massive gamers from Wall Road suffered big losses since they had been betting on the inventory’s worth happening—not up.

Subsequently, Robinhood drew the ire of each most people and politicians alike when it restricted retail merchants from guying GME inventory amid the rally. The US Securities and Trade Fee (SEC) has already acknowledged not too long ago that it “will intently evaluation actions taken by regulated entities which will drawback buyers or in any other case unduly inhibit their capacity to commerce sure securities.”

Whereas Robinhood CEO Vlad Tenev later acknowledged that halting GME purchases “was a clearinghouse choice, and it was simply based mostly on the capital necessities,” it appears like not less than some irreparable harm to the platform’s repute has already been carried out nonetheless.

Bracing for intense scrutiny

In the meantime, based on Gasparino, the SEC shouldn’t be the one company that determined to evaluation 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.

“Hedge fund execs inform @FoxBusiness they’re bracing for intense congressional scrutiny, attainable restrictions on buying and selling equivalent to quick promoting amid [email protected]@RobinhoodApp frenzy,” Gasparino famous, including, “Hedge fund commerce teams gearing up and plan to foyer Congress.”

On the intense facet, Robinhood halting GME trades has seemingly led to DeFi and crypto recognition and decentralized exchanges’ tokens have been booming recently as nicely.

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