- Robinhood all set to expand its portfolio and offer an array of cryptocurrencies and meme currency DOGE on its platform
- The Menlo Park, has launched cryptocurrency trading features to its platform
- Cryptocurrency wallets keep users private keys or best known as passwords to give them access to their own cryptos
- Thai will attract the more user base for the company
Robinhood is on an expansion spree and might add a few more crypto assets on its platform. The platform is all set to expand its cryptocurrency trading operations.
Vlad Tenev, CEO, Robinhood said that we are on an expansion spree and the company is making huge investments. The company is settling with all the plans as soon as possible.
The Menlo Park has rolled out crypto trading options
California based online brokerage, The Menlo Park, has launched cryptocurrency trading features to its platform in 2018 but the business saw growth just now. Robinhood, so far, has added 6 million crypto customers to its portfolio in just 2 months. However, the company did not reveal the number of customers trading crypto on the platform.
The number of customers trading on the Robinhood platform in 2020 has increased manifold and reached approximately 200,000. On their platform, the users have the freedom to purchase bitcoin, Ethereum and other few cryptocurrencies. However, they are not allowed to transfer coins to and from their accounts.
On the other hand, the company has informed that they have plans to provide the ability to deposit and withdraw the cryptocurrencies along with the popular meme currency DOGE in the near future. Tenev further informed that his team is working hard to make this project successful for the company and that they would do all possible efforts to make it a success.
Why is Robinhood offering such services?
The reason for Robinhood to offer the services is because many people do not want to manage their own coins and treat them as an investment. Hence through the company’s efforts, we are trying to give an option to the users to manage their own wallets and keys.
Cryptocurrency wallets keep users private keys or best known as passwords to give them access to their own cryptos. It will also give permission to the users to transact with bitcoin and other virtual currencies. They come in various forms like hardware devices and mobile apps.
Tenev also informed about the feature of Commission free investing with Coinbase. It is one of the largest cryptocurrency exchanges from the U.S. one half of one percent Commission is charged by Coinbase for cryptocurrency purchases and sales.
The traders are more sensitive to privacy and centralization issues than traditional retail investors who might not want to trust Robinhood with their assets. In January there was a 800% surge in Dogecoin. Robinhood put a temporary halt on instant deposit for crypto purchases . It means users have the authority to buy those assets with funds already deposited in their accounts.
Lack of transparency a concern
There were reports which mentioned that there is a lack of transparency in Robinhood’s payment for order flow practices. This was reported by several media reports and the Congressional hearing on the game stop trading frenzy. A direct compensation is given to the broker for directing trade execution to the third party.
Tenev believes that Robinhood will take time to come out of the controversies that appeared in the media earlier and is positive to gain more customers soon. The company is all set to launch an IPO late this year. The business was valued at $11.2 billion last year. The current valuation holds as high as $40billion, as per the news rumors.
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