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

Robinhood, a preferred buying and selling app focusing on millennials and different inexperienced traders, has grow to be a significant hub for cryptocurrencies, providing additional proof that digital belongings are garnering mainstream attraction. 

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

Robinhood gives 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 gives real-time market knowledge for almost a dozen extra digital belongings.

That Robinhood’s crypto enterprise is on the rise is hardly stunning given the dimensions and development charge 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 features was catalyzed by Bitcoin’s almost twofold enhance since January. As Bitcoin’s features 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 solely 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 reputation amongst retail merchants. Because of this, public opinion of the corporate tanked, forcing its executives to rethink their plans for a public itemizing.

Regardless of the controversy, Robinhood is shifting forward with its preliminary public providing, in line with paperwork it filed with america 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 comply with in Coinbase and Robinhood’s footsteps in pursuit of a public providing, maybe as early as subsequent 12 months.