Reparations? – Robinhood increasingly targets crypto investors
Controversial trading platform Robinhood is looking to expand its crypto business and is already working diligently in that direction.
In an interview with the company’s own YouTube channel, CEO Vlad Tenev explained yesterday (Thursday) that to this end, the workforce is to be expanded and even more cryptocurrency pairs are to be Bitcoin Profit added to the trading platform’s listing. According to the Robinhood chief executive:
„Just as people bug me about it on social media, I bug our crypto department and our developers about it. We are working on it at full speed. Let’s wait and see. Maybe we’ll add some new cryptocurrencies very soon.“
In addition to the increase in available supply, Tenev also takes a stance on a possible Robinhood wallet in the conversation. However, the CEO is cautious about this, saying that extensive testing would be needed before the platform could in good conscience launch its own crypto wallet.
As Cointelegraph had reported, the number of crypto traders on Robinhood increased by 6 million users in the first two months of the new year. This is more than 15 times the average recorded in 2020.
A larger service offering could bring even more demand in the future, which is why Robinhood has already taken strategic measures to cope with the increased traffic.
What sounds obvious could make a crucial difference, however, because crypto exchanges always go down when the market is running particularly hot.
Addressing the GameStop affair, in which Robinhood played a leading role and drew the ire of small investors, Tenev admits that it did indeed bring his company a lot of negative publicity.
He suspects that it will take several months for the platform to recover from this
The accusation was that Robinhood had temporarily suspended trading in GameStop shares in order to protect some large companies in the financial sector. Small investors had conspired to buy the stock together, causing massive losses for some hedge funds. The trading platform disputes this reading, saying that the temporary halt would rather have been due to compliance with applicable regulations. Accordingly, Tenev also emphasises in the interview that Robinhood wants to make efforts to provide clarification in this regard.
The announcement about the expansion of the crypto business comes at a time when the big competitor eToro is apparently aiming for an IPO on the NASDAQ. A corresponding agreement with the investment firm Fintech V should make this possible in the second quarter of 2021.