Ever since its incorporation, Robinhood has risen to be a standout exchange for stock trading as it charges 0% trading fees and earlier this year they went to announce of their plans to incorporate cryptocurrencies as well.
And guess what? Trading is going to be free. While the more popular exchanges such as Binance, Bittrex etc. charge a small amount, Robinhood’s announcement of free trading was sure to send shockwaves in the decentralized space and their business model seems to be already paying off.
Within a week of the announcement, millions of investors flocked to Robinhood which saw an increase of over 1 million users which rose to about 5 million by the end of February.
The overwhelming response to the crypto announcement with the company promising to work towards their goal of making the financial system equal for everyone rather than just favoring the rich.
In an interview the exchange’s co-founder Vlad Tenev said that cryptocurrencies have become the platform for many beginner investors and they Bitcoin, Ethereum etc. were here to say (well, that’s become quite evident).
He further went to say that the aim of this business model wasn’t to make huge profits but rather to breakeven and grow their customer base by providing them.
Reports from Wall Street Journal suggest Robinhood will soon be valued at around 5.6 million and another funding round in underway. In 2017 the company was valued a 1.3 million and the exponential growth has seen it become one of the top 15 most valued tech companies in the US.
The Crypto effect!
As you may have already guessed, Robinhood’s valuation has increased 3x times than in 2017 and now it’s in the running to become to become the top most online trading platforms.
The reason the Robinhood platforms only operates through a mobile app is that it mainly wants to target millennial and as we already know, the millennia’s love Bitcoin and other cryptocurrencies.
But the high transaction fees and risk is often the biggest turn off for these young investors. Robinhood hopes that their app will bring about a change as transactions are free and secure and as their incomes double it will, in turn, help the company expand.
The effect crypto has had on the company is pretty evident. There is a hunger and desire that are yet to be catered to and in the coming years, Robinhood and other similar exchanges are sure to benefit from that, after all, who doesn’t love free trades right?
Has the no commission trade got you downloading the app too? What do you think the future holds for the Robinhood app?