Robinhood Crypto just got signed up by more than 1 million people in just five days after its announcement to enable bitcoin and Ethereum trading in February. Robinhood is basically a brokerage firm that is known for its zero commission stock trading app.
Robinhood, first non-crypto firm to enter the cryptocurrency market
Just five days back, Robinhood announced that it is going to enter into the world of cryptocurrency trading. Since then, about 1 million people have already signed up for an early access to Robinhood Crypto. Beginning in February, it will allow no-fee cryptocurrency trading and people just can’t wait to join the million long waitlist of this trading platform.
However, this service won’t be available to every citizen of US but only five of its states. These five states would be Missouri, Massachusetts, California, Montana and New Hampshire.
According to a media source, prior to the announcement, Baiju Bhatt, the co-founder said in an interview:
” Crypto is going to change the world and we want to help drive that.”
The federal judges in New York, US have yet to make any rule on whether the US government really had the authority to put regulations on the cryptocurrency offerings. This ruling will determine if bitcoins among other cryptocurrencies can be regulated in similar manner as bonds, stocks and other traditional investments.
The co-founder of Robinhood, Vlad Tenev also talked about the potential of cryptocurrency:
“Cryptocurrencies have become the first foray into investing and financial services to a large number of people. Now it’s become more and more clear [that bitcoin is an] investing asset.”
There has no one from the non-crypto world that has entered into the cryptocurrency trading market. Robinhood would be the first one to do so. After all this market is known for high fees, outages and long periods of downtime.
More Customers, More Value
Talking about the market potential, Bhatt further explained that the company is all ready to handle more volumes and new clients:
“Today our business transacts 10,000 different symbols in equities and ETFs. We see millions of trades a day. In our brokerage industry there is no excuse for down time. We plan on bringing that mind-set to the crypto space. We don’t view any of that stuff as acceptable.“
Bhatt mentioned that from a business point of view, the move is a customer acquisition play. It is evident from the 3 million more users added to the firm.
“We are going to break-even on this. But it could dramatically increase user growth.”
As per the company, Robinhood is valued at $1.3 billion and has raised more than $170 million. However, the company doesn’t want to comment on its profitability.
What are your thoughts on a non-crypto, trading platform Robinhood’s entry into the cryptocurrency market? Let us know your thoughts in our comment section below!
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I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.