Well-known trading app Robinhood, which targets millennial and amateur investors, is transforming into a key platform for crypto trading. The company revealed Thursday that it had 9.50 million active traders of cryptos in the first-quarter of 2020, reflecting a 6x rise from the earlier quarter.
Robinhood facilitates commission-free trading for several top cryptos such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Dogecoin (DOGE), Ethereum Classic (ETC), Bitcoin Cash (BCH) and Bitcoin SV (BSV). The platform offers real-time price and other market data for almost a dozen cryptos.
The solid growth in Robinhood’s crypto business is not a surprise considering the bullish rally in the crypto market that paved way for a huge rise in its overall market cap in the last six months. The aggregate value of all cryptos touched $2 trillion in the beginning of April, a 100% increase in the past three months.
A major chunk of the profit was fueled by Bitcoin’s almost two-fold rise since the beginning of this year. As Bitcoin started trading in a range, altcoins have started rising. Cryptocurrencies other than Bitcoin now represent 45% of the aggregate market cap, as per data provided by CoinGecko.com.
However, this year has not been totally positive for Robinhood. The company got into trouble after it temporarily suspended GameStop and few more volatile stocks that had risen in fame among retail traders. As an outcome, public view about the company took a hit, pushing its executives to re-formulate its plans for a listing on the market.
In spite of the dispute, Robinhood is going forward with its first ever initial public offering, as per paperwork it submitted to the US SEC (Securities and Exchange Commission) past month. Even though the firm did not provide a schedule for its IPO, it affirmed that the offering would move forward “after the SEC contemplates its review process, subject to market and other conditions.”
Robinhood has joined the list of cryptocurrency exchanges such as Kraken and Coinbase, which have reported exceptional results in the first-quarter. Notably, Kraken seems to be on course to go for a public offering, along the lines of Coinbase and Robinhood, may be in the beginning of next year.
