The Robinhood team conducted a roadshow ahead of its public offering on Thursday. The firm told shareholders that it has placed bets on cryptocurrency lending, staking, and mobile wallet services.
CFO Jason Warnick said during the company’s roadshow on Thursday, which was streamed live ahead of the IPO, that Robinhood is investing in things like wallets, lending, and staking, which are popular among its users.
— Reuters (@Reuters) July 19, 2021
Robinhood Revamps its Crypto Offerings
At the moment, investors may buy and sell crypto using the Menlo Park-headquartered trading software, but traders are unable to earn interest on their holdings or transfer bitcoin to external wallets.
Back in March, Robinhood promised that a crypto wallet will be available “as fast as possible.” Several executives said yesterday that they’d launch the product on the previously promised date, but they didn’t give a launch date.
Considering the fact that Tenev had—by February 25—incorporated 6 million new cryptocurrency users onto their trading platform by 2021, one can easily assume that he is excited about the crypto sector.
Users have the option to purchase and sell bitcoin, ethereum, and other cryptocurrencies via the Robinhood Crypto app.
This is similar to PayPal, which does not allow customers to move their cryptocurrency holdings from one account to another. The Robinhood website says that the platform is “currently evaluating these features,” and will provide an update to users as soon as feasible; presumably, the platform will include a full-fledged crypto wallet at some point.
Robinhood’s Upcoming IPO
By letting consumers purchase large portions of the day-one shares offered to the public, Robinhood is placing retail investors on the same footing as institutional investors. The whole purpose of live-streaming its roadshows and having executives answer questions from consumers is to not hide.
Coinbase went public by taking the rare step of going straight public with a direct listing, but Robinhood’s approach was comparable since both companies use the cryptocurrency market to support their overall strategy.
With 17% of Robinhood’s revenue in the first quarter of this year coming from meme-fuelled crypto trading, and 34% of crypto revenues, or around 6% of its total revenue, coming from Dogecoin traders, it should be expected that percentage-wise, a 6% rise in Dogecoin value is associated with a 17% rise in Robinhood’s revenue.