Robinhood shuts down cryptocurrency trading due to hype
Robinhood turned off the oxygen to amateur traders and asked for a billion dollars
Who exactly provided the funds to the company remains unknown
HYIP Shareholders Angry With Robinhood’s Decision To Block Trading
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Robinhood, popular stock trading service in the USA, closed crypto trading amid market volatility
Update. Robinhood has temporarily restricted cryptocurrency trading. This was stated in an interview with CNBC by a company representative..
It was reported that the reason for the close of trading was “extraordinary market conditions”. BeInCrypto previously reported that Robinhood raised $ 1 billion from financial institutions and funds to weather the surge in market volatility..
“[Capital injection] is a strong sign of investor confidence that will help us continue to serve our customers,” a Robinhood spokesman said in an interview with Bloomberg..
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It remains unknown who exactly provided the funds and on what conditions..
Robin Hood for their own
The surge in volatility triggered by Reddit traders did not benefit the Robinhood platform. Soon, the trading platform (as well as TD Ameritrade and others) closed the opportunity to buy / sell HYIP shares for a group of users.
“Look, it’s impossible for us to agree on the observance of our financial obligations and our deposits with the clearing service. We need to do this, “Vlad Tenev, co-founder of Robinhood, told CNBC..
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It is noteworthy that in an interview, Tenev also said that the decision to block HYIP shares is related to the “capital requirements” in front of regulators. When asked “does Robinhood have problems with capital?” Tenev answered negatively.
Despite the large number of angry traders, there are those who support Robinhood’s decision. Greenberg Capital co-founder David Greenberg tweeted that blocking HYIP stocks was “the right decision.”.
When users asked why not only Robinhood blocked hype stocks, but also large brokers with large institutional capital, Greenberg referred to the age insolvency of many traders.
We will remind, earlier, amateur traders from Reddit decided “for fun” to arrange a pump of shares of unprofitable companies. In two weeks, shares of such companies (including GameStop) managed to overcome their highs several times. Chaos on Wall Street erupted before the White House, but they refused to comment on the situation.
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