Robinhood warns that the income could be impaired by the popularity of Doge in the IPO-NOTUNG
Robinhood warns that the income could be impaired by the popularity of Doge in the IPO-NOTUNG
- Despite a fine of $ 70 million for misleading investors, Robinhood drives his IPO plans.
- In its S-1 submissions, the company announced that its income was bound to the popularity of Doge.
Since the outbreak of Covid-19, Robinhood has been astronomical growth. Since people are stuck at home, the appetite for trade has increased, since the popularity of platforms such as Robinhood, one of the leading platforms that offers commission -free trade in shares, cryptocurrencies and stock market -traded funds via a mobile app. Robinhood has prompted the growth to register a IPO. But according to the financial reports that the company published at the beginning of this week, a large part of its success is associated with Dogecoin. Therefore, the company has warned that a decline in the popularity of the meme coins would affect its income.
In the first quarter, Doge was one of the most popular cryptocurrencies in both public appearances and on social media after a few positive mentions by Elon Musk. In May the token reached a maximum of $ 0.73. Financial reports from Robinhood show that Dogecoin made 34 percent of its sales based on cryptocurrency transactions. That is 30 percent more than in the previous quarter.
The S-1 submission to the Securities and Exchange Commission showed that a significant part of the recent sales growth was due to DOGECOIN transactions. Furthermore add ;
If the demand for transactions goes back to Dogecoin and not replaced by a new demand for other cryptocurrencies available for trading on our platform, our business, financial and earnings situation could be impaired.
In the past few months, Doge has lost more than 70 percent of its value from his maximum. In addition, the influence of Elon Musk has decreased on prices in the past few weeks.
connected : Doge investors are now focusing on Elon Musk
's SNL appearanceOverall, the company announced that cryptocurrency transactions made up to 17 percent of Robinhood or $ 87.6 million in the first quarter, which corresponds to a significant increase compared to $ 4.2 million in the previous year.
Robinhood has a fine for misleading customers
Despite their popularity among private investors, the platform has become criticized due to some irregular operations. In the crypto world, the platform is notorious to stop operating due to technical difficulties in drastic price movements. In the past, this has prevented users from selling or buying on critical levels. Although the company always promised to improve the platform to cope with the higher volume, little seemed to change.
At the beginning of the week, the US finance supervisory authority Finra imposed a fine of $ 70 million against the company due to "widespread and considerable damage" for customers due to incorrect information. This is the second year in a row in which the company works after the Securities and Exchange Commission punishes Last year imposed a fine of $ 65 million for misleading stock exchange customers.
such high fines and negotiations with the supervisory authorities will probably continue to affect the company's share prices as soon as it goes public.
Source: Crypto-news-flash.com
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