It is reported that Robin Hood, an American Internet brokerage, announced that it will launch an independent new application to support users to hold and host cryptocurrencies and NFT (non homogeneous tokens) This is Robinhood's latest move in the field of digital assets. The company is currently seeking to develop other businesses beyond stock trading. Since the IPO (initial public offering), Robinhood's share price has fallen by more than 70%.
This new application will enable Robin Hood to compete directly with big platforms such as coinbase and startups such as metamask. Coinbase CEO Brian Armstrong on [twitter] on Monday( http://stock.finance.sina.com.cn/usstock/quotes/TWTR.html ) According to the, coinbase's products are already the most downloaded mobile self managed wallet in the United States.
Robinhood's new application will support users to save NFT and connect NFT trading market and "decentralized" stock exchange. Robin hood also said that it would support users to earn income through other platforms and obtain "all kinds" of encrypted assets through other exchanges.
The holding or "trusteeship" of cryptocurrency has become a controversial issue in the industry. There is even a view that "if you don't master the key, you don't have cryptocurrency". Some people worry that keeping assets in exchanges will be more vulnerable to hackers.
Robin Hood became famous for providing commission free stock trading services and was listed in the "top 50 CNBC subversives" last year. During the outbreak of novel coronavirus, Robinhood attracted a new generation of investors, and the user base and valuation increased significantly. In addition, after restricting the stock trading of Gamestop, the company has also become the center of topic stock trading. The game station had been short by Wall Street, but grass-roots investors from reddit platform bought the company's shares to fight short.
Over the past year, Robinhood's stock trading business has slowed significantly. In the three months ended March 31 this year, Robin Hood's revenue fell 43% year-on-year. Since its listing in August, the company's share price has fallen by more than 70% and more than 88% from its all-time high.
In order to promote the growth of revenue and users, Robin Hood has been adding more cryptocurrency products and functions, and increased stock trading time in late March. In April this year, the company launched the cryptocurrency wallet. At present, the core Robinhood application still provides this function.
Vlad tenev, co-founder and CEO of Robinhood, said in a press release: "we believe that cryptocurrency is not just an asset class. By providing the low-cost services and excellent design users expect from Robinhood, our Web3 wallet will help everyone more easily hold their own keys and experience all the opportunities brought by the open financial system."
Robin Hood said the new wallet will first be available to users on the waiting list and will be launched worldwide.
It is worth noting that this new app will not charge network fees, although in some cases, the network fees of Ethereum and bitcoin are as high as $70. A spokesman for Robin Hood said the cryptocurrency product would rely on third-party liquidity providers to "compete" users' transactions in the background to offset these network fees.
Based on the "order flow payment" model of the securities industry, most of Robinhood's revenue comes from the transaction handling fees of the core trading business.