Robinhood’s crypto business explodes in the first quarter despite GameStop controversy

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Robinhood, a well-liked buying and selling app concentrating on millennials and different inexperienced traders, has turn out to be a significant hub for cryptocurrencies, providing additional proof that digital property are garnering mainstream attraction. 

The corporate reported Thursday that 9.5 million customers traded digital property on its platform throughout the first quarter of 2021 – a six-fold enhance from the earlier quarter.

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Robinhood offers commission-free buying and selling for a number of main cryptocurrencies, together with Bitcoin (BTC), Bitcoin Money (BCH), Bitcoin SV (BSV), Dogecoin (DOGE), Ethereum (ETH), Litecoin (LTC) and Ethereum Basic (ETC). It offers real-time market knowledge for almost a dozen extra digital property.

That Robinhood’s crypto enterprise is on the rise is hardly stunning given the scale and progress fee of the crypto market over the previous six months. The mixed worth of all cryptos reaching $2 trillion in early April, having doubled in simply three months.

An enormous chunk of these good points was catalyzed by Bitcoin’s almost twofold enhance since January. As Bitcoin’s good points moderated, altcoins have taken over. Cryptos not named Bitcoin now account for roughly 45% of the general market, according to CoinMarketCap knowledge.

However 2021 hasn’t been fully optimistic for Robinhood. The corporate was embroiled in controversy after deciding to droop buying and selling of GameStop and different shares that had grown in recognition amongst retail merchants. Because of this, public opinion of the corporate tanked, forcing its executives to rethink their plans for a public listing.

Regardless of the controversy, Robinhood is moving ahead with its initial public offering, in keeping with paperwork it filed with the USA Securities and Change Fee final month. Though the corporate didn’t specify when its IPO would happen, it confirmed that the providing would go forward “after the SEC contemplates its evaluate course of, topic to market and different circumstances.”

Robinhood joins crypto-focused exchanges Coinbase and Kraken in reporting stellar first-quarter outcomes. As Cointelegraph not too long ago reported, Kraken seems poised to follow in Coinbase and Robinhood’s footsteps in pursuit of a public providing, maybe as early as subsequent 12 months.