30 Jan Over One Million People in Line to Use Robinhood’s Crypto Service
Unsurprisingly, there is a high demand for cryptocurrency trading apps that don’t charge any transaction fees.
Last week, U.S.-based stock brokerage app Robinhood became the latest to hop on the cryptocurrency train by announcing that it will add a zero-fee cryptocurrency trading feature to its platform. As of today, more than one million users have already signed up to gain early access to the new service.
The app, which is super popular among the younger generation in America, was estimated to have about three million users prior to last week’s announcement. This means that Robinhood’s user base could grow by more than 33% by introducing cryptocurrency trading.
If everything goes according to plan, the new crypto service will be initially offered in the states of California, Massachusetts, Missouri, Montana, and New Hampshire starting next month. The company will then gradually roll out the feature in most states by midyear.
Back when Robinhood was first launched in 2013, analysts thought of it as an “early attack” on Wall Street launched by Silicon Valley, and now, the stock trading app could also be a potential disruptor in the cryptocurrency space.
However, time will tell if the Robinhood app will suffer from the same issues affecting cryptocurrency exchanges right now, mainly low transaction speed and inability to handle new customers. These have led to a growing number of complaints fired at major exchanges like Coinbase.
In an interview with Business Insider, Robinhood co-founder Baiju Bhatt said:
“Today our business transacts 10,000 different symbols in equities and ETFs. We see millions of trades a day. In our brokerage industry there is no excuse for downtime. We plan on bringing that mindset to the crypto space. We don’t view any of that stuff as acceptable.”
Although Robinhood pledges to offer commission-free trading on cryptocurrency, it still plans to recoup the costs associated with the new feature. The company did not elaborate on how it will do so.
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