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.