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Robinhood Says 9.5M Customers Traded Crypto in Q1, Up From 1.7M in Q4

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Online brokerage app Robinhood said on Thursday, that 9.5 million customers traded cryptocurrencies in Q1, up from 1.7 million in Q4. This increase represents a significant increase in adoption as more people are introduced into the crypto sphere. I'm not a huge fan of Robinhood because they currently don't let you withdraw your coins which means you don't really own them. However, that is changing. Their spreads on coin prices is also not very favorable, but it's an easy system to get people into the space. I can't knock that and I think they play an important role for adoption.

In a blog post titled "How Crypto Fits Into Robinhood's Mission,"The company also said its crypto team has more than tripled in number this year, with more to come as I mention in a past post they are looking to hire as they role out more cryptos and features like withdrawals. They say that crypto fits their cooperate goals as both are looking to democratizing finance for all.They currently offer even tradable coins: bitcoin, bitcoin cash, bitcoin sv, dogecoin, ethereum, ethereum classic and litecoin. However, with the expansion of their crypto team are looking to add more offerings shortly.

The increase in users comes with Robinhood has reportedly confidentially filed for an initial public offering that would include a listing on the Nasdaq. They will be competing with Coinbase which is doing a direct listing. I would say these are the two platforms that are most commonly used for US based customers to purchase crypto. I'll be interested to see how the platforms are impacted by going public. AN influx of cash can always be used to improved services, but there are negatives about being public as well. Increased regulatory scrutiny ands the fact the companies will have to answer to share holders may makes these companies less likely to take on riskier innovations and focus only on profits.

Only time will tell, but I'm keeping a close eye on all these IPOs and listings because they are going to be driving factors in the short term.

Posted Using LeoFinance Beta