The Official Trump cryptocurrency has seen a big pullback over the last week of trading. The token was launched late on Jan. 17 and rocketed higher in its first day on the market, but it's subsequently seen a significant valuation decline. Official Trump's valuation is falling in conjunction with negative media coverage and reactions from some cryptocurrency investors and post-inauguration trading momentum.
Robinhood Markets (NASDAQ: HOOD) stock has been on a tear lately, with a whopping 358% gain over the past 12 months alone. In fact, I think Robinhood stock could plunge by at least 50% from its current price around $50 (as of this writing). First, there is transaction revenue, which it earns when clients buy and sell stocks or cryptocurrencies.
With Bitcoin's (CRYPTO: BTC) reputation for being "digital gold" cementing rapidly, it's the perfect example of how the idea of money as a form of value storage is changing to be more fluid and less pinned down to physical objects. Most people would point to physical gold as a store of value. The global market cap for gold, at the prevailing market price of around $2,751 per ounce, is roughly $18.4 trillion.
Generally speaking, stock splits take place when the price of a stock is deemed to be too expensive for the average investor. In a stock split, there is no change to the overall market cap of the stock. In a 2-for-1 stock split, for example, the number of shares doubles, but the price of each share is cut in half.