There was a lot of hype around how a Robinhood (NASDAQ:HOOD) Markets, Inc. (NASDAQ: HOOD) listing would potentially send Shiba Inu (CRYPTO: SHIB) to the moon.
With more than three weeks past the listing, here's a reality check on how Shiba Inu has fared since it was listed on the trading app.
Did SHIB Listing Help? Robinhood allowed its customers to buy and sell four additional cryptos, including SHIB, beginning on April 12, the company revealed in a blog post. The other cryptos that made it to the app included Compound (CRYPTO: COMP), Polygon (CRYPTO: MATIC) and Solana (CRYPTO: SOL). With these additions, the number of cryptos that can be traded on Robinhood increased to 11.
Robinhood's decision to add SHIB came after tremendous pressure from the crypto's loyal community. They argued that it would even give a fillip to the trading app's trading volume. Executives of Robinhood had explained away their apprehensions by suggesting that they did not want to get into trouble with the SEC by indiscriminately listing cryptos.
Since April 11, Shiba Inu has shed about 9.1% of its value. It did rally to $0.000030 on the day of the listing, but has pulled back since then. Robinhood's stock, meanwhile, has lost about 8.2% following the SHIB listing.
Related Link: Robinhood Analyst: Trading App Could Be Gen Z's Charles Schwab (NYSE:SCHW), But Faces These Near-Term Pressures
External Noise Skewed Desired Results? The lack of lift for the crypto and the trading app's stock may have to do with several extraneous factors. The broader market has been in doldrums in the said period, dragged by a host of factors. The SPDR S&P 500 ETF Trust (NYSE: SPY (NYSE:SPY)), considered a proxy for the broader market, has lost about 1.8% between May 11 and now.
Fears of Fed tightening and the jitters created by geopolitical tensions have served to dampen risk appetite of investors.
Robinhood's stock, meanwhile, took a hit from the trading app's disappointing first-quarter performance. The impact of the Shiba Inu listing will begin to reflect in Robinhood's trading volume only from the second quarter.
At last check, SHIB was seen trading down 0.46% at $0.00001984, according to Benzinga Pro data. Robinhood closed Friday's session at $10.12, down 4.62%.
Related Link: Is Shiba Inu A Good Investment
Photo: Created with an image from Diverse Stock Photos on Flickr
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read at Benzinga