Robinhood’s performance in the seven months since offers investors a glimpse into the risks of purchasing an asset based on a television commercial alone while ignoring potential risks. The stock has slumped almost 65% from its IPO price as crypto and stock trading volume dropped from the highs experienced during pandemic lockdowns. Robinhood didn’t advertise during the 2022 Super Bowl.
This year, trouble followed the ad blitz almost immediately on Sunday evening. Rather than a celebrity cameo, Coinbase Global Inc.’s ad featured a bouncing QR code reminiscent of a DVD player screensaver. The code led to an offer of $15 in free Bitcoin for new users who sign up.
The website promptly crashed as Coinbase reported “more traffic than we’ve ever encountered.”
This article was provided by Bloomberg News.