2021-02-26 08:00:00

GameStopped? Robinhood Adds 6 Million Users YTD

Online brokerage Robinhood has added 6 million new users for its cryptocurrency services in the first two months of this year, Yahoo! Finance wrote.

The numbers come as a huge upswing, as Robinhood’s crypto services only saw 200,000 new customers per month, on average, in 2020.

Robinhood’s services allow users to buy and sell cryptocurrencies. Recently the company said it would be debuting a new feature to give customers the ability to deposit and withdraw them for transfers to other wallets.

This comes as retail trading volumes have increased, and some cryptos like bitcoin and dogecoin have seen more activity.

Bitcoin has seen historic highs for months now, recently hitting its highest value yet of $58,354 and with a market capitalization of over $1 trillion — although it’s lowered some since then. The coin saw prices rising 300 percent in 2020.

And dogecoin, which initiated as a satirical coin lampooning the 2013 crypto frenzy, has done well, too, with its value rising in concordance with the trading frenzy surrounding GameStop and AMC. Like those two companies, dogecoin was seen as a so-called ‘meme stock.’ A tweet from Elon Musk, currently the world’s richest man, which supported dogecoin, also spurred the coin to rise in price more than 60 percent, Yahoo! Finance wrote.

Robinhood came under fire recently for its decision to shut down trading on some of the stocks that had been performing extraordinarily, in what it said was an attempt to keep the market under control. Customers were also angered around that time by the shutting down of the feature on its app to instantly buy crypto securities, due to the GameStop frenzy.

PYMNTS wrote about Robinhood’s decision to allow for crypto deposits and withdrawals earlier this month, including that dogecoin would be among those allowed to be deposited or withdrawn.

Robinhood doesn’t currently invest in cryptocurrency or use any customer cryptocurrency for its own benefit.

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PYMNTS STUDY: A NEW APPROACH FOR MODERNIZING PAYMENTS IN BANKING – 2021

About The Study: A New Approach For Modernizing Payments In Banking, a PYMNTS collaboration with Red Hat and Temenos, is a research-based report examining the trends transforming retail commerce and how these shifts are creating new challenges and opportunities for banks. The report aims to offer banks a roadmap to help them gain the technical capacity to support digital payments in all their forms.

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