Kevin O’Leary calls Coinbase and Robinhood shares ‘toxic waste.’ Both of them offer crypto services and had their IPO in 2021. Coinbase had it on April 14, while Robinhood had it on July 29. Robinhood’s share opened at $38, while Coinbase opened at around $330 and went as high as $420 due to the demand. However, since their IPO, both companies have seen a significant fall in price. Coinbase is currently trading at $88.90, while Robinhood is at $10.88. Both of them have shed nearly 3/4th of their value.
Why Kevin O’Leary thinks Coinbase and Robinhood are ‘toxic waste’?
Kevin was at a loss in his Coinbase and Robinhood investments, but he still got out. So, what’s the reason? Couldn’t he have held whatever was remaining of his investment? Well, the primary reason why Kevin sold his holdings wasn’t the fall in their prices. Kevin says it’s the war they are taking on with regulators. He thinks that there can be no good outcome of this from his experience in investing.
Coinbase has been involved in so many lawsuits recently that it has become the primary highlight of the company. Its employees have been called out for alleged insider trading. They are also being investigated by the Securities and Exchange Commission for allegedly listing 10 securities on their platform.
Since Coinbase is going all out with the regulators and Kevin considers himself a regulated guy, he is out. So, he is ready to take a major loss rather than hold on to the company’s shares.
Now that’s all about Coinbase, so what’s wrong with Robinhood?
Robinhood also falls under the crypto sector, which within itself is unchartered and unregulated territory. It is not that Kevin thinks that the crypto industry is dead or will be in the future, but he would rather invest in regulated assets rather than non-regulated ones. Until the regulatory issues go away, Coinbase and Robinhood will be like ‘toxic waste’ to Kevin. He does believe that things will turn out to be okay in the future, but till then, the entire crypto industry will be in a mess.
What are your thoughts on Kevin O’Leary as he calls Coinbase and Robinhood shares ‘toxic waste’ and dumps them? And do you think his point of view has some truth to it? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: BlackRock partners with Coinbase to offer crypto services to Aladdin clients.
