Amateur investors who traded on the US-based Robinhood platform will be eligible to be compensated for losses of up to $10,000 per account by NINT Coin, a cryptocurrency platform. According to the announcement published today, the compensation will come from a pool of 100 million NINT Coins tokens.
“We are giving every individual who lost money while trading without experience on the stocks or options markets a second chance to recover their losses by owning NINT Coins free of cost. They can hold the coins for future gains or sell right away,” the NINT Coin commented. Also, the measure comes in the wake of the recent meme stocks and Bitcoin (BTC) frenzy, according to the platform.
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The firm stated that Robinhood is welcome to accept its token on their platform if they wish to do it. “To this end, NINT Coin is not only encouraging retail investors to recover their losses but highlighting the notion that cryptocurrency is in many ways superior to fiat alternatives—and that the fiat-alternative cryptocurrency blockchain ecosystem features vast potential,” the announcement added.
Warning Issued on Flipping IPO Shares
On the same day, the online brokerage issued a warning about investors who sell or flip their IPO shares, as they are at risk of being restricted by the platform from participating in future IPO deals for a couple of months. “We won’t prevent you from selling shares you get through the IPO Access program. However, if you sell IPO shares within 30 days of the IPO, it’s considered ‘flipping’ and you’ll be restricted from participating in IPOs for 60 days,” Robinhood noted on its website.
The US Securities and Exchange Commission (SEC) recently published its plan to distribute $65 million in civil penalty collected from Robinhood for non-disclosure of the practice of “payment for order flow.”