Robinhood saw its shares fall Wednesday below the company’s IPO price right after the platform reported worse-than-expected third-quarter revenues due to a drop in cryptocurrency trading, Fortune reports.
- Shares for Robinhood dropped 10.7% Wednesday due to weak Dogecoin trading on the platform.
- The shares dropped to $35.32 per share. Robinhood’s initial IPO price in July was $38.
The drop comes as rumors picked up last week about Shiba Inu coin joining Robinhood’s cryptocurrency trading app. As I wrote for Deseret News, the Robinhood app is considered a mainstream cryptocurrency trading app.
If Shiba Inu joins Robinhood, it would be the final piece of the puzzle for the meme-based cryptocurrency, which has already made its way onto Coinbase, which is another popular trading platform, and Public, a retail trading app that rivals Robinhood.
- The cryptocurrency exchange platform ChangeNOW last week offered investors the chance to trade any Dogecoin tokens for Shib coin tokens. Investors took advantage of the deal, hoping to bulk up on Shiba Inu coins before the Robinhood move.
- It’s still unclear if Robinhood will add Shiba Inu.
A spokesperson for Public said adding Shiba Inu coin gave investors a chance to pick more crypto tokens — but it comes with a risk.
- “Because the prices of cryptos can be volatile in the short-term and tend to follow different patterns than stock market securities, Public will have Volatility Reminders on crypto pages to ensure investors can make their own decisions with context,” the spokesperson told Business Insider.
