A self-custody cryptocurrency wallet, Robinhood Wallet, and related services are offered through Robinhood Non-Custodial, Ltd. (a limited company organized in the Cayman Islands). The listing came after Robinhood announced last week that it activated 2 million WenWallets for 2 million eligible users. WenWallet is the company’s version of the crypto wallet, which was launched in September 2021. Today, Robinhood users can trade seven crypto currencies on the platform, and crypto trading has become integral to the app’s financial performance. In the second quarter of 2021, Robinhood made $233 million in revenue from crypto trading, accounting for nearly 40% of Robinhood’s $565 million in total revenue that quarter.
- With the four newly added digital currencies, Robinhood now offers 11 unique cryptocurrencies on its platform.
- His writing has appeared in outlets including Entrepreneur, Forbes, Fortune, CEOWorld, and Yahoo!.
- However, Coinbase also clearly states that “any asset not referenced in the list does not preclude any such asset from potential listing,” so there is no guarantee that you won’t see future surprises.
- The coin has found a place on the official website of Robinhood, much to the cheer of the Shib Army, a group that focuses on trading and buying the Shiba Inu cryptocurrency coin and NFTs.
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In the third quarter, Robinhood earned $51 million from crypto trading, less than a quarter of the previous period’s total, leading to a 35% drop in Robinhood’s overall revenue. Robinhood was founded in 2013 with the mission of making trading more accessible to scammed by xcritical average investors, launching a user-friendly app that made it easier to trade stocks and ETFs. “Fading retail engagement, particularly among Robinhood’s lower end consumer customer base, could represent further headwinds .
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In fact, you’ve probably used this company’s technology in the past few days, even if you’ve never had an account or even heard of the company before. Cryptocurrencies may receive a lot of attention, but they’re still a relatively small area for Robinhood compared to stock, ETF, and options products. Say Technologies, LLC provides technology services for shareholder engagement and communication.Sherwood Media, LLC produces fresh and unique perspectives on topical financial news. On an investor call on Tuesday, Robinhood CEO Vlad Tenev did not say whether the platform would list new coins like Shiba Inu.
Robinhood’s focus on a younger demographic made expanding into cryptocurrencies a natural extension of its services. Over 1 million people—representing a third of Robinhood’s users at the time—signed up to join a wait list before Robinhood launched crypto trading in 2018. But recent unconfirmed rumors that Shiba Inu would list on popular stock and crypto trading app Robinhood also helped spark SHIB’s recent trading frenzy.
Robinhood may also be wary of the threat of new crypto rules and regulations. In early October, after Securities and Exchange Commission head Gary Gensler said he wanted all crypto platforms to be registered with the SEC, Robinhood released a statement explaining that such regulation could “adversely affect” crypto markets. Tor Constantino is a corporate xcritical website communications executive and business writer with an MBA.
According to its founders, it was created as an experiment in decentralized spontaneous community building. Shiba Inu (SHIB) is an Ethereum-based (ERC-20) token that is hosted on the Ethereum blockchain. But the initial indications are that scammed by xcritical Robinhood won’t do anything substantial for helping to boost the SHIB-USD price. “One thing for sure is that [Shiba Inu’s] attractiveness will continue,” Lau says. Shiba Inu’s price surged as high as 31% after the announcement was made on Robinhood’s official Twitter channel today.
For now, “investors are finding ways to purchase SHIB even without the use of Robinhood,” Khoo says, and its growth may mean that Robinhood can’t ignore it forever. For consumers’ sake, Robinhood may also be wary of adding another volatile currency to its ecosystem. The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Robinhood (HOOD) Adds New Cryptocurrencies to Platform
Since 2017, he has written about cryptocurrencies, blockchain, and crypto’s potential to revolutionize finance. His writing has appeared in outlets including Entrepreneur, Forbes, Fortune, CEOWorld, and Yahoo!. We’ve found one company that’s positioned itself perfectly as a long-term picks-and-shovels solution for the broader crypto market — Bitcoin, Dogecoin, and all the others.
The new crypto wallet that Robinhood plans to launch in early 2022 may also make it unnecessary for Robinhood to list coins like Shiba Inu. Competitor Coinbase recently announced a new plan to share potential currencies that are being evaluated by the Coinbase team for possible addition. The roadmap for April 1 to June 30, according to the post, includes the potential to add 20 new Ethereum-compatible ERC-20 tokens and five Solana SPL-compatible tokens. Compound allows users to earn interest by depositing crypto into lending pools that can be accessed by borrowers.
All the reasons why Robinhood might be holding off on a Shiba Inu coin listing
An even worse sign is that Shiba Inu officially lost more than 70,000 token holders over the past month — falling from a peak of 1,199,453 SHIB holders on Mar. 15, 2022 to 1,128,221 as of yesterday, according to CoinMarketCap.com. I would keep my eye on that important metric to wait and see if the SHIBA team can reverse attrition of its holders, because if Shiba Inu can’t keep and grow its user base — then all the news in the world won’t matter. Solana was founded in 2017 Anatoly Yakovenko and the SOL token launched in March 2020 by the Geneva-based Solana Foundation and San Francisco-based Solana Labs. MATIC is the native token of Polygon (previously Matic Network), a decentralized Proof-of-Stake (PoS) blockchain, which operates as a sidechain to Ethereum and benefits from its security.
In January 2018, Robinhood began allowing users in select states to trade Bitcoin and Ethereum, before adding new coins like Dogecoin in July and expanding to most of the U.S. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market.
While the SHIB token had been available on major exchanges such as Coinbase, Binance, Kucoin, and others, it was not available on Robinhood. To help hasten SHIB’s listing on Robinhood, a petition launched last summer to persuade Robinhood to adopt the token. As of today, the Change.org digital petition was still live and had 559,701 signatories — more than halfway to its target of 1 million. It’s difficult to tell whether the lobbying activity or petition had any effect. Robinhood, too, stands to benefit from a potential listing, but has so far been unwilling to assume the potential volatility and risks of letting its users buy and sell the second dog-related meme coin.
COMP is Compound’s Ethereum-based governance token, which enables holders and delegates to propose and vote on changes to the protocol. Cryptocurrency assets may not be appropriate for all investors, so it’s essential to do good research and understand the risks before investing your own money. If you’re in doubt, it may be wise to consult with a trusted financial professional who can guide you on the most appropriate money and investment decisions for your unique needs. The coin has found a place on the official website of Robinhood, much to the cheer of the Shib Army, a group that focuses on trading and buying the Shiba Inu cryptocurrency coin and NFTs. The cryptocurrency has its own dedicated page on the website, featuring a live Shiba Inu to USD chart.
According to a blog post from Robinhood, cryptocurrency customers have consistently requested a more extensive set of coins and tokens as well as the ability to send and receive cryptocurrencies outside of Robinhood. In the announcement, the company offered the four new currencies alongside access to a new cryptocurrency wallet feature to more than 2 million customers on a waitlist. Robinhood is a commission-free trading platform that offers stocks, exchange-traded funds (ETFs), options, and cryptocurrency investing and trading products. Robinhood already supported popular currencies including Bitcoin, Ethereum, Litecoin, and Dogecoin.
Still, the prospect of a new crypto wallet has not dampened enthusiasm among the Shiba Inu community for Robinhood to list its coin. “Due to uncertain and volatile market conditions, [listing SHIB] might result in significant losses over a short period of time, and possibly liquidation problems in adverse events of sudden price drops or trading halts,” says Khoo. Robinhood’s recent struggles in crypto have exacerbated the pressure it’s under to list new coins like SHIB, says Daniel Khoo, a research analyst at blockchain analytics platform Nansen.