Stock trading app Robinhood will launch on Nasdaq at a price of $ 38 per share

In a move that reflects the company’s unorthodox nature, Robinhood has reserved a significant share in the IPO for its own clients and a total of 35% for retail investors in the app. Robinhood’s decision to set aside a large share for its customers means that 50% of startup investors, part of Robinhood’s user base, will have access to its IPO app. 

The robinhood stock trading app, launched in 2013 by two young entrepreneurs, is designed to provide an alternative to traditional finance and democratize finance with zero commission transactions. Robinhood has had its fair share of controversy over the past eight years, however, and this year it switched to crypto trading after the Dogecoin jump in January.

More recently, crypto’s business model has become an important part of Robinhood to invest in crypto currencies and has allowed millions of people, especially novice investors provided more accessibility to retail and trade. During the bull market, Covid crypto Sundays gained significantly, and Robinhood retail customers invested heavily in crypto. 

After the success of the crypto surge, Robinhood’s value was estimated at $ 11.2 billion, and after the IPO its stock price will be around $ 32 billion.

While Robinhood can offer retail investors the opportunity to buy shares, the greater the percentage of shares held by retail traders, the greater the volatility of the shares in question. In a Bloomberg article, the stock trader of a major New York asset manager commented on the phenomenon:

“Everyone expects more volatility in trade, that’s all. More stocks in retail hands, more volatile”

Retail traders at Robinhood could see huge price swings in the coming days and weeks, leading many institutional investors to simply decide to “sit down” and not hold an IPO. Something already expected as Robinhood’s sh

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