Is Robinhood Crypto Just Hype?
- Robinhood is valued at $1.3B
- Robinhood shares the same demographic as cryptocurrency investors
Free stock-trading app Robinhood has recently announced its modern extended feature Robinhood Crypto. Now valued at $1.3 billion, Robinhood will allow users to trade cryptocurrency in a custom, 1980s-Tronstyle transaction portal. Will Robinhood become the next Coinbase?
Why This Matters: It is a logical succession that the Robinhood program would develop and adapt to millennial taste buds. Robinhood shares the same demographic as cryptocurrency investors; men ages 25–35 years old. With this new feature, users can transfer up to $1,000 to trade popular coins like Bitcoin and Ethereum and 14 other crypto coins.
For Robinhood to be a notable competitor to Coinbase they would have to broaden their horizons by offering an inclusive experience. Coinbase, which has 3% transaction fees, is available in 32 countries and has exchanged $50 billion in digital currency while servicing more than 10 million customers.
Coinbase announced its opening the first regulated Bitcoin exchange in the U.S. after receiving $75 million in investments from the New York Stock Exchange. The company is compromising with the U.S government on regulation and it remains to be seen if Robinhood will do the same.
Situational Awareness: Since the beginning of the year two major companies have embraced blockchain technology. First, Kodak (KODK +5.94%) with KODAKCoin, used to fund KodakOne technology that encrypts and protects licensed photos and now Robinhood Crypto. With the successful exposure both groups had after associating with crypto, this might be the beginning of publicly traded companies adopting digital currency and hopping on the blockchain bandwagon.
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