Robinhood IPO May Be Delayed From GameStop
Robin HoodInitial public offering (IPO) plans could be put on hold following the GameStop debacle that ended in a suspension from trading last week, Cryptoslate reported Wednesday (February 3), citing a tweet fFox Business Network senior correspondent Charles Gasparino.
SCOOP: Ppl inside @RobinhoodApp tell @FoxBusiness plans for an IPO are on hold to focus on surviving the current drama over stock trading and settlement issues. Executives say they have access to even more capital than the additional amounts raised today. After @TeamCavuto 12:30 p.m.
– Charles Gasparino (@CGasparino) February 1, 2021
In a survey conducted by the anonymous network Blind, 83% of 8,750 professionals surveyed believe Robinhood “messed up its IPO,” Cryptoslate reported.
The Security & Exchange Commission (SEC) is examining the GameStop fiasco, and Congress has reportedly introduced proposals for restrictions on hedge fund trading, including short selling, the outlet said, citing another tweet from Gasparino.
BREAKDOWN: Hedge Fund Executives Say @FoxBusiness they’re gearing up for scrutiny from Congress, possible restrictions on trading such as short selling in the middle $ GME–@Reddit–@RobinhoodApp frenzy. Hedge fund business groups are gearing up and planning to lobby Congress. w More 330pm @LizClaman
– Charles Gasparino (@CGasparino) February 2, 2021
Robinhood GameStop fiasco has already triggered lawsuits filed by two states upset by the start-up’s decision to invest to stop trading. GameStop’s shopping frenzy was propelled by the Reddit group WallStreetBets. Robinhood was not the only one to suspend trade. Several others have also pulled the shares of GameStop, AMC and others from trading, a move that has sparked a digital uproar on social media and trading forums.
Robinhood said he had to stop trading after clearinghouse-mandated deposit requirements increased 10 times the normal number. The company said it had no choice but to “take steps to limit the purchase of these volatile stocks to ensure that we can comfortably meet our demands.”
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