Shares of Robinhood Markets Inc. dropped below their initial public offering price amid declining cryptocurrency trading activity and growing calls from users to list the popular meme token, Shiba Inu.
In premarket trading on Wednesday, Robinhood’s stock fell 10.7% to $35.32 per share. That’s more than $2 below its July IPO price of $38 and significantly lower than its peak valuation of $85.
This decline followed the company’s third-quarter earnings report, which showed weaker-than-expected revenue—largely driven by a slowdown in crypto trading.
What Led to the Decline?
Robinhood benefited greatly from the surge in retail investing during the COVID-19 pandemic. While stock trading drove most of its early growth, cryptocurrency transactions—especially involving Dogecoin—fueled record engagement and new account registrations in the second quarter of 2021.
However, crypto trading volume declined significantly in Q3. This resulted in fewer new funded accounts and lower overall revenue.
CEO Vlad Tenev noted that interest in cryptocurrencies, particularly Dogecoin, had cooled from its previous highs. This dip reflects broader market trends, where retail enthusiasm fluctuates quickly based on meme coin volatility and social media trends.
The Shiba Inu Petition
Despite the cooling interest in other cryptocurrencies, demand for Shiba Inu (SHIB) is growing. More than 333,000 people have signed a petition on Change.org urging Robinhood to list Shiba Inu.
Supporters argue that adding SHIB could help Robinhood rebound by attracting a new wave of users and traders.
Shiba Inu’s market momentum is undeniable. It recently became the 11th-largest cryptocurrency by market cap, nearing $24 billion—close to Dogecoin’s valuation of $29 billion.
The token’s utility is also expanding. For example, some restaurants in Paris now accept SHIB as payment, signaling its growing acceptance as a digital asset.
What’s Next for Robinhood?
Robinhood faces a delicate balancing act. On one hand, it must respond to user demand and market trends. On the other, it needs to ensure that new listings align with its compliance and risk management frameworks.
Listing a volatile asset like Shiba Inu could boost engagement, but it also comes with regulatory and reputational considerations.
For now, the market is watching closely. If Robinhood decides to list SHIB, it could see a resurgence in trading activity. If not, it may need to find other ways to rekindle user growth.
👉 Explore more trading strategies
Frequently Asked Questions
Why did Robinhood’s stock fall below its IPO price?
Robinhood’s stock declined due to lower-than-expected Q3 revenue, primarily caused by reduced cryptocurrency trading activity compared to the previous quarter.
What is Shiba Inu?
Shiba Inu is a cryptocurrency inspired by the Dogecoin meme. It has gained a large online following and is now among the top digital assets by market capitalization.
Why are people petitioning for Robinhood to list Shiba Inu?
Many traders believe that listing SHIB would attract new users to Robinhood and boost trading volume, helping the platform regain its growth momentum.
How has Shiba Inu gained popularity?
Shiba Inu’s rise has been fueled by social media, online communities, and increased real-world usage, such as being accepted by businesses in parts of Europe.
What are the risks of Robinhood listing Shiba Inu?
Listing a highly volatile meme coin involves regulatory scrutiny, market risks, and potential reputational challenges—especially given the speculative nature of such assets.
Can Shiba Inu be used for purchases?
Yes, some businesses, including restaurants in Paris, have begun accepting Shiba Inu as a form of payment, enhancing its utility beyond pure speculation.