Crypto investment startup Robinhood plans to conduct the first public offering of shares (IPO). This was announced at the TechCrunch event by the company's CEO Baiju Bhatt.
According to Bhatt, the startup is actively looking for a new CFO and in the long-term perspective is going to get a public status. Robinhood CEO noted that US regulators are engaged in checking financial results and security measures of the company since it provides financial services. Robinhood is the second most expensive fintech startups in the US. In May, during the round of financing for the D series, it raised $363 million, while its market evaluation at that time was $5.6 billion. Since February, the company provides customers with an ability to trade cryptocurrencies, though there is no option for withdrawing funds from the platform presented. The startup receives income by charging interest rates on the outstanding balances of customers' accounts, selling warrants to exchanges as well as premium subscriptions. In June rumors arose that the company would launch its own crypto wallet. They were based on the new vacancies for developers in this field that Robinhood opened.
WHY IS IT IMPORTANT?
- Robinhood attracts customers due to the fact that it does not have a commission fee for conducting transactions. In addition, users can keep their crypto on the same account they use to trade shares.
- Bhatt previously stated that the goal of the startup is to become the largest crypto platform by the end of 2018, and the status of a public company can help achieve this. Holding an IPO is often seen as a confirmation of success, and after receiving a public status, shares of the company could be freely traded on exchanges. This, in turn, will attract more funds for the development of the site.