Robinhood has reported that 9.5 million customers traded crypto on the company’s platform in Q1 of 2021, which was a significant jump from 1.7 million in Q4 of 2020.
April 9, 2021 | AtoZ Markets – Robinhood, a popular trading app targeting millennials and other inexperienced investors, has become a major hub for cryptocurrencies, offering further proof that digital assets are gaining traction.
The company reported Thursday that 9.5 million users traded digital assets on its platform during the first quarter of 2021, a six-fold increase from the previous quarter.
Robinhood offers commission-free trading for several major cryptocurrencies, including Bitcoin, Bitcoin Cash, Bitcoin SV, Dogecoin, Ethereum, Litecoin, and Ethereum Classic. It provides real-time market data for almost a dozen other digital assets.
Established in 2013 by Vladimir Tenev, Robinhood’s crypto business is on the rise is not surprising given the size and growth rate of the crypto market over the past six months. The combined value of all cryptocurrencies reached $2 trillion in early April , having doubled in just three months.
A large part of those gains was catalyzed by the rise of Bitcoin, which has nearly doubled since January. As Bitcoin’s gains have moderated, altcoins have taken over. Cryptocurrencies that are not called Bitcoin now account for about 45% of the global cryptocurrency market, according to data from CoinMarketCap.
But the year 2021 has not been entirely positive for Robinhood. The company became embroiled in controversy after deciding to suspend trading in GameStop and other stocks that had grown in popularity with retail traders. As a result, public opinion of the company sank, forcing its executives to rethink their plans to go public .
Despite the controversy, Robinhood is going ahead with its initial public offering, according to documentation it filed with the US Securities and Exchange Commission last month. Although the company did not specify when its IPO will take place, it confirmed that the offering will go ahead “after the SEC contemplates its review process, subject to market and other conditions.”
Robinhood joins crypto-focused exchanges Coinbase and Kraken in presenting spectacular first-quarter earnings. As AtoZ Markets recently reported, Kraken appears poised to follow in the footsteps of Coinbase and Robinhood in pursuing a public offering in 2022.
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