“Crypto boom” – Robinhood has significantly more crypto users than in the previous year
28. Februar 2021
In the first two months of the new year alone, the trading platform recorded 6 million new crypto users.
Robinhood, the recently controversial trading app that specializes in small private investors, has revealed that the number of crypto investors on its platform has increased by 15 times compared to the previous year
As the company shows in a new report called „Crypto Goes Mainstream“, more than 3 million new users bought cryptocurrencies through Robinhood in January. In February there are so far 2.9 million new users. In the first two months of the new year alone, the number of “crypto newbies” has grown by almost 6 million users.
A considerable increase, because in the strongest month of the past year (July 2020) only 401,000 new crypto users were gained, although trading activity on the crypto markets was particularly high at this time due to the Bitcoin halving.
On average, there were around 200,000 new crypto users per month on Robinhood in 2020, which makes the new numbers all the more impressive. The transaction sizes also reflect this picture, because currently transactions are carried out with an average value of 500 US dollars, which corresponds to an increase of 100% compared to the first three quarters of the previous year. From this the report concludes:
„The numbers are clear: 2021 started with a crypto boom.“
The platform probably wants to jump on this boom, because Robinhood already revealed in a tweet last week that deposits and withdrawals for crypto currencies will soon be available.
The company, which in its name (Robin Hood) already suggests that it stands up for the “little man”, has to make up for a lot against him. As part of the GameStop affair, the platform temporarily suspended trading in GME shares, and trading in the crypto currency Dogecoin ( DOGE ) was also suspended after it was also catapulted to new heights by small investors. Observers suspect that the company was trying to protect its big financiers at the expense of the common people.
This had a political aftermath in which the American Parliament immediately questioned Robinhood’s entire business model. CEO Vlad Tenev responded, however, that the trading stop had to be carried out due to legal requirements by the US Securities and Exchange Commission.