SEC Delays Robinhood’s IPO Plans As a result of Crypto Enterprise



Briefly

  • Robinhood filed for a confidential IPO on March 23, 2021, however additional particulars in regards to the providing have but to be revealed.
  • The SEC has now delayed the IPO additional, citing additional scrutiny into the corporate’s crypto enterprise.

The hyper-popular retail buying and selling app Robinhood has had a large 12 months up to now. However its IPO plans have hit a snag, in response to a Bloomberg report.

The U.S. Securities and Alternate Fee (SEC) is reportedly taking a better take a look at the corporate’s cryptocurrency operations. Alongside conventional shares, Robinhood merchants may also commerce a handful of cryptocurrencies, together with Bitcoin, Ethereum, and Dogecoin.

The extra scrutiny has pushed again the corporate’s IPO date to subsequent month, nonetheless, a supply near the matter mentioned that the occasion may very well be pushed again so far as this fall.

Robinhood’s crypto ambitions

Robinhood’s CEO, Vlad Tenev, has made the corporate’s cryptocurrency operations a key focus this 12 months. In a current interview, Tenev said that Robinhood is in search of to “make an enormous funding and rent a ton of individuals” to construct out these operations. The renewed deal with crypto got here after a virtually six-fold enhance within the variety of customers who traded cryptocurrencies, from 1.7 million in This autumn of 2020 to 9.5 million in Q1 of 2021.

Nonetheless, this a part of the agency’s enterprise has struggled to maintain up with demand. When SpaceX and Tesla CEO Elon Musk appeared on Saturday Evening Reside, triggering an sudden sell-off in Dogecoin, Robinhood customers had been unable to purchase or promote the premier meme coin. This was only one week after an identical outage on the platform for a similar cryptocurrency.

Outages on Robinhood and crypto’s notorious volatility have now culminated in a better inspection from America’s lead regulator.

In the meantime, the main cryptocurrency in Bitcoin has fallen removed from its highs of $64,000 final month. At this time, Bitcoin is buying and selling at $34,219, up 4.2% within the final 24 hours, in response to Nomics.

Disclaimer

The views and opinions expressed by the writer are for informational functions solely and don’t represent monetary, funding, or different recommendation.



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