Robinhood keeps expanding at a pace that even its biggest fans haven’t predicted. Not only has its valuation continued to skyrocket (currently stands at $5.6B), but their ‘cost free’ crypto trading platform is bringing in millions of new users, even as the bear market in cryptos rages.
And now this – Robinhood has announced even more crypto brands have been added for crypto enthusiasts to trade.
The company said in an announcement on Thursday that Litecoin and Bitcoin Cash have been added for Robinhood Crypto users following strong demand from customers for crypto assets beyond the current options of bitcoin and ethereum.
As part of the announcement, Robinhood also claimed it now has over 5 million users on the platform following the expansion of its crypto trading service to 17 U.S. states.
The company’s co-founder and co-CEO Baiju Bhatt previously said he expects Robinhood Crypto to be able to cover the entire U.S. by the end of 2018 as part of a plan to become one of the largest cryptocurrency platforms.
It all adds up to one of the biggest retail threats to Coinbase as the dominant crypto brand in the United States. Coinbase’s issues with customer complaints have been well documented here, and Robinhood continues to push into the space and steal market share.
We’ve heard rumors that Coinbase is pushing into the institutional space (GDAX/Coinbase Pro) because they are getting their teeth kicked in on the retail side of their business. In other words, Robinhood is crushing them and their margins.
Expect that to continue and for Robinhood to keep pressing the envelope in this space. We also expect them to further develop their lending platform and margin business. Frankly, the crypto space is tailormade for those two business lines.
Oh, and it doesn’t hurt that Robinhood is currently a media darling. While Coinbase manufactures public relations hits, Robinhood’s organic coverage is lapped up by the financial media. Will be very interesting to see where these two firms stand a year from now.