Seeing others make money is more painful than losing money oneself. If you missed out on Figma, don't be sad. A Benzinga analyst thought they were one step closer to early retirement by subscribing for a thousand shares through Robinhood before the Figma IPO, but it turned out to be a false hope.

On July 31, design collaboration platform Figma Inc. (NYSE: FIG) officially listed on the New York Stock Exchange, becoming the center of attention in the tech circle. This company not only makes designers happy but is also cherished by cloud giants like Google and Airbnb. In 2022, Adobe was willing to spend $20 billion to acquire this UI/UX design startup, but the regulatory authorities shook their heads in refusal. Since then, Figma's value has been significant, and from Wall Street to Silicon Valley, everyone views Figma's IPO as a major annual event.

Figma's debut also did not disappoint: it opened at $85, more than double the initial price of $33, and soared to a level that made people question their lives, with a market cap once exceeding $55 billion. On Friday (August 15), FIG closed at $79, and investors were smiling, but that author could only admire one share. What exactly happened?

Robinhood allows retail investors the opportunity to participate in IPOs.

In the past, it was almost impossible for retail investors to participate in IPOs; Wall Street's big banks had long held a firm grip on the market, and most people didn't have time to blink before stocks were snapped up. However, in 2021, Robinhood launched the IPO Access Program, changing the game and allowing ordinary retail investors to purchase shares before they went public. Benzinga author Tom Gentile saw Figma appear on the IPO page and immediately clicked the subscription button with the speed comparable to grabbing BlackPink concert tickets, quickly submitting a request to buy 1,000 shares at a maximum price of $33 per share, with $33,000 in cash ready to go.

The mood on IPO day was like a rollercoaster.

Tom Gentile received an email from Robinhood confirming his commitment to invest $33,000 in Figma, and he would only be charged after receiving stock allocation. On IPO day, FIG opened at $85 and then skyrocketed, doubling in price. Tom Gentile was delighted, thinking that if he bought a thousand shares, his earnings would exceed $80,000! At that time, he hadn't seen the second email from Robinhood, and when he finally opened it, he saw a heartbreaking message: 'Your request to purchase 1,000 shares of FIG has been partially completed. Congratulations, you have received one share of FIG stock at a transaction price of $33.'

Robinhood is like playing a blind box game for retail investors; buying stocks is like opening a card pack.

It's not a mistake, it's not a copy error, it's not a test email, Tom Gentile really only received one share, ready to invest $33,000, but ended up being mocked by cruel fate, this IPO felt like a large lottery, and he only received a consolation prize.

The harsh truth is that having a ticket does not guarantee entry.

Robinhood uses a Random Allocation Process, giving retail investors a fair chance to participate, but it's like playing a gachapon; spending money doesn't guarantee getting the most valuable rare character. A bunch of investors on Reddit lamented that they received nothing, and don't think you can immediately cash out that one share you got; Robinhood has long had anti-dumping provisions in place. If you sell your IPO allocation within 30 days, you'll be frozen for 60 days and prohibited from participating in future IPOs.

  • This article is reprinted with permission from: (Chain News)

  • Original title: (Crying! Robinhood plays IPO blind box, heavily invested retail investors only get 1 share of Figma)

  • Original author: DW

'Figma's IPO becomes a grand event on Wall Street, Robinhood users only get 1 share, retail investors are reduced to chives' was first published on 'Crypto City'