Robinhood CEO Vladimir Tenev said he regards cryptocurrencies as a vital part of business today. At the same time, you ensure that your firm has a commitment to these digital assets. Therefore, your customers can expect new features related to virtual currencies at any time.
Specifically, it is the introduction by the broker of wallets or electronic wallets to host and trade virtual currencies. Likewise, he explained, there will be a series of changes in the platform that will make it a space of greater compatibility with cryptocurrencies. This would give its users greater ability to take advantage of this sector.
It is a process that has already started within this platform. The change towards mechanisms related to cryptocurrencies, is presented as a great success for the trading company. In that sense, so far in 2021, trading with currencies like Dogecoin, pays him big dividends. In particular, this “meme coin” represents 6% of the overall earnings of the application.
Why did Robinhood decide to turn to cryptocurrencies?
Although Robinhood is frowned upon by many, its CEO considers that it has a commitment to cryptocurrencies. The legal problems of the firm were taken to the authorities. It should be remembered that the platform was reported for “crashing” during a period of high market volatility, which caused significant damage to its users.
Regarding the latter case, the Financial Industry Regulatory Authority (Finra), ordered the firm to pay about $ 70 million dollars. The Robinhood executives, for their part, agreed to cancel this fine for the damages caused.
Despite this, the firm continues with its plans regarding the introduction of crypto features. «We are doing a lot of work behind the scenes to offer our crypto users the functionality they are waiting for.“Said Tenev. He added: “You want digital wallets and we know it.”
He also explained that the beta version of the new platform will appear at any time, although he did not offer further details about it. The promise to offer a cryptocurrency wallet to Robinhood users has been coming since March and Tenev believes that it will soon materialize.
Robinhood sees cryptocurrencies as part of the future. For this reason, its CEO Vlad Tenev announces the launch of options compatible with these digital assets such as a wallet that allows direct deposits and withdrawals. Source: Fox Business
Can be traded but not withdrawn or deposited
Trading with cryptocurrencies within the platform can be done without problems. However, when making withdrawals or deposits with these digital assets, this is where the inconveniences for users appear.
This fact could be an advantage capitalized by direct competitors, including Coinbase, where digital currency options are their nature. Hence, the urgency with which Robinhood is working to accelerate the provision of this service.
At the same time, Tenev assures that they want to introduce the changes safely. This means that the platform will not act hastily, as this could lead to some security-related problems.
«We want to introduce new features safely. There are a large number of points that we must assemble correctly from the beginning“Explained the CEO of the financial trading firm. For Robinhood, he considers, the fact is that the changes will come as quickly as possible because it is a commitment to cryptocurrencies.
The way to the bag
Another of the high priority aspects for this platform is its intention to be listed on the stock market. The platform would be ready to launch its Initial Public Offering (IPO), with an estimated valuation of $ 35 billion. Likewise, the firm’s plans, under the initials HOOD, would be to sell some 55 million shares valued at $ 40 each.
The vision of this company on Wall Street is highly positive. Their numbers speak for themselves. For example, by 2020, the company was valued at $ 12 billion and by the end of the same year, it already reached the figure of $ 20 billion. What’s surprising about this is that, by February 2021, the latest amount had already doubled to $ 40 billion.
Robinhood’s potential is undeniable, although not everyone agrees. In this last group, there are those who condemn the alleged false information of the firm and the creation of FUD so that its users make hasty movements.