- Brokerage app Robinhood stated 9.5 million of its clients traded crypto in Q1 of 2021.
- A historic crypto market bull run and the latest GameStop brief squeeze might have had one thing to do with it.
The web brokerage service Robinhood stated on Thursday that 9.5 million of its clients traded cryptocurrency on its platform in Q1 of 2021.
That’s up from simply 1.7 million in This fall of final 12 months, a 458% spike.
The weblog put up additionally says that Robinhood’s founders are “fascinated by blockchain know-how,” and that “the prospect of an open and decentralized international monetary system, one the place everybody can have entry to monetary companies, strongly aligned with Robinhood’s mission.”
And whereas it’s definitely true that progress on a preferred buying and selling platform like Robinhood might mirror progress in the remainder of the market, there could also be one other contributing impact that the corporate isn’t mentioning.
In late January, inventory merchants used the Reddit message board r/WallStreetBets to juice the worth of ailing names like GameStop, Blackberry, and AMC. When Robinhood responded by quickly halting trades on these shares, a lot of these merchants turned their consideration to cryptocurrencies like ; the worth of that token shot up considerably after social media endorsements from Tesla CEO Elon Musk.
Robinhood finally restricted crypto trading, too.
The corporate is now dealing with dozens of lawsuits from sad clients, some of which are crying market manipulation. Regardless of the detrimental consideration, the app has clearly loved a large surge in crypto exercise.