Although Robinhood is especially popular for the GameStop fiasco from 2021, its existence in the crypto area just ended up being strong considering the meme coin trend that began around September 2021.
Today, the exchange is progressing and broadening its services after releasing a crypto wallet last month and revealing the arrival of its non-custodial wallet today.
Robinhood Brings Another Crypto Wallet
In a news release, the cryptocurrency exchange specified that it is establishing a brand-new cryptocurrency wallet that is set to launch at some point after the completion of quarter 2 of2022
This wallet will be a non-custodial wallet, which generally enables users to be the sole owner of the personal secrets, which are crucial to accessing their wallet and carrying out deals on any blockchain.
Just last month, Robinhood had likewise introduced its cryptocurrency wallet.
Being the very first on the platform, Robinhood mentioned throughout the launch that the crypto wallet would allow its users to utilize the properties they trade in the exchange for numerous functions rather than offering them for cash upon requirement.
However, the method of the non-custodial wallet varies from the cryptocurrency wallet in that the user will no longer depend on Robinhood in any method.
Non-custodial wallets, for instance, would not be impacted need to Robinhood’s system closed down.
But this self-reliance likewise opens the user to the possibility of losses given that the wallet’s secrets will entirely be the wallet holder’s obligation. Losing it may trigger the user to lose their funds entirely.
Further discussing the launch of the wallet, Robinhood’s co-founder and Chief Executive Officer (CEO), Vlad Tenev, stated,
” By using the very same low expense and terrific style that individuals have concerned anticipate from Robinhood, our web3 wallet will make it simpler for everybody to hold their secrets and experience all the changes that the open monetary system needs to provide.”
Robinhood’s Focus on Cryptocurrency
To press itself beyond the limits of its present reach, Robinhood has been active recently. Simply last month, in April, Robinhood settled a purchase offer to get a London-based fintech platform, Ziglar. This enabled the crypto exchange to develop its existence in the United Kingdom.
The reason that these efforts are important is that Robinhood’s earnings have decreased this year.
As the quarter one 2022 reports expose, Robinhood’s overall net profits reduced by 43%, from $522 million in Q1 2021 to simply $299 million in Q1 2022.
Furthermore, despite the marketplace rallies of mid-February and later March, the cryptocurrency profits of the platform reduced by 39% to simply $54 million in the very first quarter of this year, from $88 million in the very first quarter of 2021.
Although the total bottom line did decrease to simply $392 million from $1.4 billion in Q1 2021, it did refrain from doing much for Robinhood.
Even at the time of composition on May 18, Robinhood’s ticker HOOD decreased by 5.45% in 48 hours, keeping its RSI limited in the bearish, neutral zone for a month and a half directly.
Thus, to counter these negatives, Robinhood is doing the most it can to bring in more users and trading volume on its exchange.
To strengthen these efforts, it even extended the trading hours for its stock exchange by 4 hours. Robinhood intends to ultimately use equity trading services 24 hours a day, every day.
In conclusion, while Robinhood is taking the ideal actions by leaning on the crypto market for its development, it requires to likewise keep the present condition of the marketplace in mind before depending on it.
The crash of May 9 affected a lot of financiers, and the bearishness that took place may keep more recent financiers at bay for a while.