NASDAQ Debut Results in 8% Drop for Cryptocurrency Trading App

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Traditionally Initial Public Offerings (IPOs) have a lock up period of 6 months, but Robinhood isn’t a conventional IPO, Robinhood are set to allow its employees to unload 15% of the company’s stock immediately after it goes public, should they choose to sell.

Shares of Robinhood the Bitcoin (BTC) trading app fell 8% of Thursday follow its debut, representing one of the worst IPO debuts of its magnitude on the NASDAQ market.

Following the company’s first trading session on Thursday, Robinhood’s HOOD stock dropped approximately 8.4%, below its IPO price, from $38 dollars to under $35 and falling. The firm had recently went public on NASDAQ with a $32 billion valuation. However, since its market value fell to $29 billion the HOOD stock closed the session.

According to Bloomberg data, Robinhood’s first trading day was rock bottom on record among a pool of 51 startups that were monitored using the same metrics. As reported by CNBC, Robinhood had sold approximately 52.5 million shares, representing over $2 billion, as the co-founders Baiju Bhatt and Vlad Tenev collectively selling approximately $50 million of available shares. 

Robinhoods popularity surged amongst the Crypto community when it offered its users access to crypto giants Bitcoin and Ethereum (ETH). The company’s crypto-based division has seen significant growth this year, with the first quarter revenue increasing sixfold over the previous quarter in comparison.

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