NewsletterRobinhood ($HOOD) gets a taste of its own medicine, stocks halted after 65% surge
Robinhood, the fintech trading platform that also supports crypto trading faces a similar situation that it was accused of at the start of the year. The shares of the firm rose 65% earlier today, following which the trading of the stocks was halted due to high volatility. The stocks were halted twice in the day because of the high fluctuation in their price.
Robinhood shares halted for second time this morning amid 65% surge https://t.co/li6KvGLQfl pic.twitter.com/WcGWTDjgGL
— CNBC Now (@CNBCnow) August 4, 2021
The situation is quite ironic given Robinhood created a storm in the first quarter of 2021 after halting trades for several crypto assets and Gamestop stocks citing high volatility. The stoppage of trading for the surging stocks and digital assets had put the fintech platform in hot waters with regulators and also led to a congressional hearing.
In the aftermath, Robinhood had also said they might delist crypto assets because of their volatility as it poses serious risks for investors. However, today’s event marked a full circle for the platform as it faces a similar situation because of which it wanted to delist crypto assets.
The Volatility Argument Against Crypto Market Must be Put to Rest
Robinhood is not the only mainstream stock that has faced a trade halting due to high price volatility. Gamestop made headlines at the start of the year for its monstrous gains along with AMC and other meme stocks.
The Crypto market’s volatility has been often used as an excuse by regulators and mainstream financial giants to look down upon it as a mainstream investment. However, the crypto market’s volatility has come down significantly over the years.
If we compare the price fluctuation of Robinhood stocks today to the biggest market slump in the crypto this year, Robinhood’s price volatility easily surpasses the crypto market volatility in May and June. As most of the crypto saw their price slump between 30%-50%. The price volatility in the crypto market has often been associated with pump and dump schemes as well.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- OCC Confirms That Banks Can Facilitate No-Risk Crypto Transactions
- Bitcoin, Ethereum, XRP, Solana Rally Ahead of Fed Rate-Cut Decision
- Bitwise Multi-Crypto ETF Featuring Bitcoin, Ethereum, XRP, Solana, Cardano Goes Live
- Standard Chartered Lowers Bitcoin Year-End Target to $100K Amid Crypto Sell-Off
- Breaking: USDC Issuer Circle Taps Into Privacy Trend with USDCx Launch on Aleo
- HYPE Price Drops 7% as $2.2M Shift and 10M Token Unlocks Stir Fear — What’s Next?
- Ethereum Price Breaks $3,390: What’s Driving 10% Surge?
- Shiba Inu Price Surges as Whale Transfers Hit Highest Levels Since June
- Bitcoin Price Alarming Patterns Point to a Dive to $80k After FOMC Decision
- Pi Network Price Could Surge to 15%, But Watch Out for This
- Cardano Price Prediction – Analyst Eyes 56% Rally as Taker Buy Dominance Strengthens
