From Coinbase’s IPO to the Robinhood scandal. These were the most important fintech news of 2021.
FINTECH-BASED STARTUPS SKYROCKETED IN VALUE:
A year ago it was hard to understand why these types of companies were having such an exaggerated valuation, for example Deel reached $1.3 billion in April and $5.5 billion in October, Ramp went from $1.6 billion to $3.9 billion and so on among other examples.
According to Frank Rotman, co-founder and partner of financial technology venture capital firm QED, it is because investments are now shifting to venture capital, the same startups fuel predictions of big returns….
NFTS EMERGE AS A PHENOMENON THAT GENERATES BILLIONS OF DOLLARS IN PROFITS:
2021 was definitely the year of NFTs (Nonfungible tokens) these digital assets that are unique and validated thanks to blockchainS became an important asset for crypto investors, for example Mark Cuban.Celebrities of all categories have surrendered to this fever and have acquired pieces for millionaire figures as the recognized piece that Beeple sold for $69 million. It should be clarified that these transactions are made thanks to Ethereum one of the most popular cryptocurrencies and that of course with this emergence of NFT, is seeing its best numbers and we can not ignore what companies dedicated to the sale of these tokens have been receiving. OpenSea reported over 3.4 billion USD in transactions.
These transactions have set a before and after in sectors such as music, art and even real estate.
We didn’t know what title to put on this point because there is a lot to tell here that were very important news in 2021 and they all have something in common: Robinhood.
First: the movement that was created on Reddit where all the investors of the group proposed to take the shares of GameStop, Blackberry and AMC to very high prices to counteract the shorts that big investors were applying to these companies. This was a fact and GameStop went from $18 on January 7 to $348 on January 27. Causing losses to Wall Street investors in excess of $20 billion.
After this, the scandal arrived, because Robin Hood, having a conflict of interest, did not allow these shares to continue to be bought, thus saving a little, the big investors and leaving out of the game this group that made history by saving Gamestop from bankruptcy and exposing the lack of ethics on Wall Street.
COINBASE GOES PUBLIC AND IS A SUCCESS:
After the refusal of many experts on finance, in the face of cryptocurrencies, Coinbase sets a milestone in history by going public and revealing an incredible profitability above 300 million dollars and obtaining a valuation of 86 billion dollars in its debut.
These were for us at Scrummers, the news that most impacted us during 2021, let’s see what this 2022 holds for the beautiful path of blockchain and all its possibilities.