Robinhood CEO Hints at New Features for its Platform
Co-founder and CEO of stock and crypto trading platform, Robinhood, Vlad Tenev has hinted at new crypto- based features which will be added to the trading platform. Vlad declared that the platform remains committed to being cryptocentric. Robinhood has recorded much success and revenue this year since it listed a number of cryptocurrencies on the platform.
Robinhood came into limelight in the wake of the buzz that followed Gamestop (GME) stocks after a Reddit community attracted attention to the stocks. Its popularity soared during the bull run in February when meme token Dogecoin attained a record-shattering all-time high of $0.73. Robinhood acknowledged that the Dogecoin spike contributed 34% to its revenue for Q1, and 6% to its overall venue.
Robinhood Stalls Crypto Wallet Release, Says Safety is More Important
Back in June, CEO Tenev had revealed the platform was working on a crypto wallet for its users. However, he also said the wallet would take a little longer before its public launch as the platform was more concerned about safety. Now, the platform is willing to double down on its crypto offerings as this attracted numerous signups earlier this year.
Robinhood also noted that a decline in the price of Dogecoin could be bad for its revenue. While Dogecoin and other investment products including GME and AMC were responsible for the surge in its revenue, they also generated much controversy for Robinhood. Downtimes resulted from traffic on the platform as investors scrambled to purchase and trade crypto and stock offerings in February/March. Robinhood was equally subjected a barrage of criticisms after one of its users committed suicide when he saw that his account read -$700,000, which was the result of a glitch.
Robinhood prides itself as a democratized trading platform created to provide a level playing field for retail investors. A large percentage of its user base and following is made up of millennials and Gen Zs. In June, Financial Industry Regulatory Authority (FINRA) slammed Robinhood with a $70 million fine, while citing ‘significant harm’ it caused to its users during the February buzz, as they were unable to access their accounts.
Robinhood Files For IPO, Launch Delayed by US SEC Investigation
Robinhood’s growth over the past months has forced it to file for an IPO to the US SEC. The Initial Public Offering (IPO) was scheduled to launch on July 4, but stalled in view of the legal scrutiny the Commission has subjected Robinhood to. Notwithstanding, details of the filing show that Robinhood is currently valued at $35 billion and would put up 50 million shares on the New York Stock Exchange at $40 per share upon listing. Its shares would maintain the ‘HOOD’ ticker.
This comes on the heels of Coinbase’s March listing with a valuation of $90 billion, making it the first crypto-based firm to go public. Circle, stablecoin firm has hinted at a possible listing before the close of the year. Crypto exchange, Binance has also shown interest in listing its Binance US subsidiary.
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