Is Robinhood Crypto A Hype Ahead Of IPO?

CBx Vibe:Yes Indeed” Lil Baby & Drake

By CultureBanx Team

  • Robinhood shares the same demographic as cryptocurrency investors
  • Robinhood is valued at nearly $12B

Free stock-trading app Robinhood has recently announced its modern extended feature Robinhood Crypto. Now valued at $12 billion ahead if its highly anticipated IPO, Robinhood allow users to trade cryptocurrency in a custom, 1980s-Tronstyle transaction portal. Will Robinhood become the next Coinbase?

Why This Matters: A spike in demand for pre-IPO shares suggests that the company’s valuation could approach a whopping $40 billion, though that estimate is likely overly optimistic. 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:

While Robinhood has an impressive funding history in the private market, going public can give the company access to even more capital to fuel future innovation and growth

CBx Vibe:Yes Indeed” Lil Baby & Drake

CONTRIBUTOR

CultureBanx Team

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