Robinhood Records 6mln First-Time Crypto Investors in 2021
Robinhood, which mainly serves retails traders through its app, has disclosed that the count of new customers who bought cryptos through its platform is 15x the previous year’s average.
As per the latest report named “Crypto Goes Mainstream,” over three million new customers used Robinhood Crypto to buy digital currency in January.
Similarly, over 2.90 million fresh users have purchased crypto in February. In fact, Robinhood Crypto’s client base has increased by 6 million in 2021.
On the contrary, the maximum number of fresh users trading via Robinhood Crypto platform was 401,000 in July, when transactions increased in the head way to Bitcoin’s block reward halving event, the third of its kind.
Last year, the count of new monthly crypto traders on Robinhood platform was 200,000 (average).
The report also reveals an average order ticket size of $500 on the platform, reflecting a 100% rise when compared to the initial three quarters of 2020. The report finished with the following statement:
“The numbers are clear: 2021 has started with a crypto bang.”
Through the launch of crypto deposit and withdrawal facilities last week, Robinhood intends to further improve its crypto business. Robinhood had been at the center of controversy last month following the temporary suspension of trading facility in Dogecoin and a few other stocks that rose sharply through concentrated efforts of retail traders active on Reddit group, named r/WallStreetBets.
During Congress hearings on Robinhood issue, representatives of the U.S. House Financial Services Committee investigated the business model of the company. That revealed the platform’s inability to maintain $3 billion in collateral when there was coordinated pump of GME shares by retail investors, leading to the suspension of trading in that counter.
Nevertheless, Robinhood CEO Vlad Tenev has accused the T+2 settlement processes enforced by the US SEC (Securities and Exchange Commission) for its collateralization problems.