Ethereum Interest Trounces Bitcoin And Robinhood (-27%) Becomes A MemeStock

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Last Updated on 6 August 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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Ethereum is outshining Bitcoin, both in mentions on social media and in growth as of late. As investors ready themselves to return to market in September, many institutions have expressed an interest in Ethereum.

In fact, the preference by crypto traders for Ethereum is shown in the Ethereum / Bitcoin pair which is now headed for a third consecutive green weekly candle. At the time of writing, Bitcoin is trading around $40.7k and Ethereum at $2.775.

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Robinhood becoming a Memestock

Over on Wall Street, trading app Robinhood, which saw a bad first day, soared 85% on Wednesday after which its share price was halted. At the end of the day, it was still 50% higher. By yesterday evening though, much of those winnings were erased. WallStreetBets, the trading forum on Reddit that blasted Robinhood back in January and February when the trading company forbade them from buying and selling GameStop shares when they whiplashed as well, was furious. So what happened?

Robinhood is known as a major crypto trading place, and is a whale HODLer when it comes to Dogecoin, with some 20% of its crypto trading coming from the Shiba Inu themed cryptocoin. A few weeks ago, it announced it would be introducing an app to limit volatility of its crypto trading. It is therefore quite funny that Robinhood itself now acts like a memestock.

Retail investors had in fact piled into Robinhood options on their first day of trading, and in response the stock shot up sharply. On Thursday morning however, before Wall Street would open, the company announced it was selling up to 97.9 million class A shares, aka letting its board sell their preferred shares first. By Thursday evening, Robinhood closed 27% lower.

Max Gokhman of Pacific Life Fund Advisors explained:

Robinhood engineered itself to be a meme stock from the get-go, When that happens, we should absolutely expect eye-watering price moves on any given day, without any news.

mmaxer / Depositphotos.com