Young Americans are signing up in droves to a new cryptocurrency trading service, showing the massive unmet demand in the market for more bitcoin trading venues. Cryptocurrencies are coming soon to the Robinhood platform and traders appear to be following them in anticipation.
Robinhood Hits the Bullseye
Over a million people are already waiting in line to get early access to bitcoin and cryptocurrencies trading service by Robinhood Markets, according to its launch website. The Palo Alto-headquartered US stocks brokerage app has just announced the upcoming service a few days ago.
To put things in perspective, Robinhood has an estimated user base of only about 3 million people, which means it could grow by as much as 33% by adding cryptocurrency trading or that a third of its clientele will switch to bitcoin. Of course this will not happen immediately as the company will only start rolling out the service in February to a limited number of American states.
The service will initially begin with commission-free BTC and ETH trading in California, Massachusetts, Missouri, Montana, and New Hampshire. It already offers market data on 16 cryptocurrencies in the form of bitcoin, ethereum, bitcoin cash, litecoin, ripple, ethereum classic, zcash, monero, dash, stellar, qtum, bitcoin gold, omisego, neo, lisk and dogecoin.
Stealing Users from the Rich
When it was launched in 2013 with financial backing from Google Ventures, Andreessen Horowitz and other, many analysts saw Robinhood as an early attack by Silicon Valley against Wall Street. It was speculated to be a precursor of a larger assault by tech giants against the entrenched stock brokerages, which largely didn’t materialize. Now it could be bringing disruption to a whole new industry – cryptocurrency exchanges.
The major trading venues in the bitcoin world have been suffering from an inability to handle the influx of new customers throughout the 2017 rally, leading to withdrawal delays, degenerated services and a lot of frustrated clients. At the same time the exchanges kept raking in incredible profits, with Coinbase alone reportedly making a billion dollars in revenue during the period. It would be fair to say the market is set for disruption, but it remains to be seen whether Robinhood, a company which isn’t famed for great customer service, is the one to achieve this.