This week Robinhood announced the long awaited feature of Cryptocurrency Wallets. Up until now, Robinhood allowed users to buy and sell cryptocurrency, which was stored on a Robinhood central wallet.
Since individual users did not have their own wallets however, sending and receiving cryptocurrency was not an option for Robinhood users. The wallet feature on Robinhood has been long sought and speculated upon.
Robinhood is expected to roll out wallets to select users this October, and has promised wallets to all users by the beginning of next year. Robinhood’s price per share jumped 10% on this news.
Robinhood was a popular platform during the rise of Dogecoin as it attracted many first time cryptocurrency buyers. Unfortunately Doge was not an easy coin to obtain for people who were new to Cryptocurrency. Most platforms that offered Dogecoin didn’t have a direct medium of exchanging dollars for cryptocurrency (this exchange had to be done elsewhere for Bitcoin, and sent to a different platform where you could trade Bitcoin for Dogecoin).
While larger platforms like Coinbase now offer Dogecoin, at the height of the meme buying craze, the easiest place for new users to buy was on Robinhood. Despite Robinhood not having individual wallets, a large number of people still bought on Robinhood for the ease of purchase and the well above average quality real time price charts.
However, this created a concentration problem for Dogecoin, where a large amount of the currency was concentrated in just a few wallets. This problem was called out by the Doge Father himself, Elon Musk.
If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue imo.
— Elon Musk (@elonmusk) February 14, 2021
One of the largest offenders by far was Robinhood. Even though the Dogecoin supply on Robinhood belonged to a large number of users, being stored in a single central wallet played a large role in the concentration problem. Users finally having their own individual wallets will clear a large part of this concentration problem up in short order.
Robinhood is also expected to have upcoming promotional offers in the works to celebrate the launch of wallets. Traditional Robinhood promotions include zero-fee cryptocurrency trading, free shares of stock, as well as slices of a cryptocurrency pool. You can join Robinhood at this link.
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