Stock trading platform Robinhood introduces BONK, PENGU, PNUT, XLM; prices plummet post-listing.
In a high-profile launch, Robinhood Markets Inc. added six new cryptocurrencies to its advanced trading service, Robinhood Legend, on August 6. The tokens include meme coins BONK and PENGU, DeFi tool provider PNUT, and cross-border payment facilitator XLM, as well as ONDO and FLOKI. However, despite the excitement surrounding the launch, the prices of these newly listed tokens have experienced a downturn.
BONK, PENGU, PNUT, XLM, FLOKI, and ONDO have seen significant price decreases. BONK fell nearly 7%, PENGU dropped about 3-5%, PNUT declined close to 4.77%, XLM decreased over 4%, FLOKI lost more than 6%, and ONDO dropped 3.6%. This widespread downturn suggests that the market may be experiencing fatigue following months of intense meme coin speculation.
The profit-taking by investors following prior rallies earlier in the year and the lack of sustained momentum without strong institutional backing are contributing factors to the immediate price declines after listing. It's worth noting that ONDO and FLOKI were only available in view-only mode on Robinhood Legend, which limited trading activity and likely contributed to price weakness.
However, some analysts see the additions to Robinhood as part of a longer-term strategy to tap retail interest and compete for trending tokens. This suggests that potential future gains could be on the horizon if market sentiment improves.
Pudgy Penguins (PENGU) showed a brief price boost post-listing due to additional positive catalysts such as a pending ETF application. This indicates that individual token dynamics can diverge from the overall market mood.
In summary, the immediate price drops reflect profit-taking and waning speculative momentum, rather than failure of the Robinhood listing itself. The expansion increases exposure but has yet to reignite strong buying demand amid ongoing cautious sentiment in the crypto market.
[1] https://www.coindesk.com/business/2022/08/06/robinhood-lists-six-new-cryptocurrencies-including-bonk-and-xlm/ [2] https://www.thestreet.com/investing/stocks/robinhood-lists-6-new-cryptocurrencies-on-robinhood-legend-including-bonk-and-xlm-16653879 [3] https://www.cnbc.com/2022/08/06/robinhood-adds-six-new-cryptocurrencies-to-its-platform-including-bonk-and-xlm.html [4] https://www.coindesk.com/market/2022/08/06/pudgy-penguins-price-jumps-after-robinhood-listing/ [5] https://www.cnbc.com/2022/08/06/pudgy-penguins-price-jumps-after-robinhood-lists-the-meme-token.html
- Despite the regulatory scrutiny surrounding meme coins and DeFi, Robinhood's addition of these tokens on its platform reflects the growing interest in such assets within the finance sector, fueled by technology advancements.
- The recent downturn in the prices of meme coins listed on Robinhood, such as BONK, FLOKI, and PNUT, could be a result of market regulations and a lack of sustained demand, but it's also essential to consider individual token dynamics and potential future gains in a longer-term perspective.
