Main cryptocurrency and inventory buying and selling app Robinhood is reportedly struggling to maneuver ahead with its preliminary public providing
Main cryptocurrency and inventory buying and selling app Robinhood is reportedly struggling to maneuver ahead with its preliminary public providing as a consequence of an ongoing evaluate from securities regulators.
In accordance with a Thursday report by Bloomberg, the USA Securities and Trade Fee has been questioning Robinhood about its cryptocurrency enterprise, leading to delays for the agency’s public providing plans. The corporate has been increasing its cryptocurrency gives since March, growing its workforce and including extra crypto buying and selling pairs.
Citing nameless folks conversant in the matter, the report said that Robinhood’s IPO plan might be delayed till autumn. As beforehand reported, Robinhood initially deliberate to launch its IPO in June however postponed the providing to July a number of weeks in the past, with sources claiming that the agency needed to time its IPO to when folks return from the July four vacation.
One of the well-liked apps to commerce shares and crypto in the USA, Robinhood confidentially submitted a draft IPO registration with the U.S. SEC in March. The corporate didn’t initially specify an anticipated date for its IPO, solely stating that it could pursue a public providing “after the SEC contemplates its evaluate course of, topic to market and different situations.”
Robinhood didn’t instantly reply to Cointelegraph’s request for remark.
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After launching cryptocurrency buying and selling in early 2018, Robinhood has seen its crypto enterprise thrive, posting a sixfold quarterly improve in customers through the first quarter of 2021. Robinhood’s large progress this 12 months got here regardless of the controversy across the firm suspending buying and selling of GameStop inventory this January, going through outrage from the buying and selling group and elevated consideration from U.S. regulators.
Alongside points associated to GameStop, Robinhood additionally turned a goal of public criticism after it allegedly provided buying and selling providers to inexperienced traders. In April, Massachusetts’ securities regulators sought to revoke Robinhood’s broker-dealer license within the state, accusing the agency of offering providers to Massachusetts prospects with little or no funding expertise.