Robinhood to Launch Web3 Wallet to Rival MetaMask and Coinbase

Key Insights:

  • The trading firm wants to let its customers get exposure to decentralized finance.
  • The wallet will be launched in Beta this summer and in full by year-end.
  • Coinbase also announced DeFi functionality in its mobile app this week.

On May 17, Robinhood (HOOD) announced its new non-custodial, Web3 wallet that will allow customers to have more control over their digital assets. The company added that its new multichain wallet would launch as a standalone app. It will feature a similar design to Robinhood, which simplifies trading functions.

The wallet will be similar to rivals such as MetaMask in that users will be able to hold the keys for their own crypto assets. Similar wallets by crypto exchanges Coinbase and Binance put the company in control of the private keys, making them centralized.

It will also offer trading and token swaps with no network fees, nonfungible token (NFT) storage and connection to NFT marketplaces, decentralized finance (DeFi) yield farming, and a variety of supported cryptocurrencies.

The Big Web3 Push

Co-founder and CEO of Robinhood, Vlad Tenev, said that the firm views crypto as more than just an asset class, adding:

“By offering the same low cost and great design that people have come to expect from Robinhood, our web3 wallet will make it easier for everyone to hold their own keys and experience all the opportunities that the open financial system has to offer.”

He added that the product would satisfy the “most advanced DeFi believers” while creating a secure on-ramp for those just starting out in crypto to go deeper into the ecosystem.

Robinhood also plans to cover the network or gas fees which can make token swapping prohibitively expensive at times of peak network demand.

The wallet isn’t available just yet, but there is a waiting list for early access to the Beta program this summer, and the company stated that it would be available to all customers by the end of the year.

Robinhood is best known as an equities trading platform, making its name during the 2021 meme stock trading frenzy. The firm has also done well from cryptocurrency trading during the booming market last year. Company stock remained flat on the day reaching $10.13 during after-hours trading. Shares are down 43% since the beginning of the year, however.

Coinbase DeFi Wallet Unveiled

The Robinhood move comes in the same week that America’s leading crypto exchange, Coinbase (COIN), unveiled its own DeFi app. On May 17, Coinbase announced that it was introducing Web3 and DeFi functionality within its mobile app.

In true Coinbase style, the new service will only initially be available to a handful of users. It will enable Ethereum-based (ETH) Web3 applications within the mobile app. These include NFT marketplaces such as OpenSea, trading on decentralized exchanges like Uniswap (UNI), and borrowing, lending, or swapping through DeFi platforms such as Compound (COMP) and Curve (CRV).

FTX Exchange CEO Takes a Stake in Robinhood Trading Platform

Key Insights:

  • Sam Bankman-Fried has spent $648 million on Robinhood stock.
  • The millennial trading platform aims to expand internationally.
  • HOOD prices jumped more than 20%, but the FTX exchange token has been battered in the crypto market rout.

The big share purchase has granted Bankman-Fried a 7.6% stake in Robinhood. He labeled it an “attractive investment” and settled on a cool $648 million in company shares at an average price of $11.52.

The crypto billionaire said that he has “no intention of taking any action toward changing or influencing the control” of Robinhood and bought the stake just as an investment.

There is a possibility that he may offer the company “strategic alternatives or operational or management initiatives,” according to reports.

According to a securities filing, Bankman-Fried began making the purchases in mid-March and continued into this week buying the stock through Emergent Fidelity Technologies, an investment vehicle he controls. Crypto industry investor Anthony Pompliano was quick to offer a comment:

Robinhood Branching Out

Robinhood went public in July 2021 as one of the most highly anticipated IPOs of the year. The firm offers stock and crypto trading targeting a largely millennial customer base. The company saw revenues soar during the 2021 crypto boom when new traders flocked to the platform; however, trading activity was lackluster in 2022 with the market meltdown.

Robinhood has ambitions to compete with Coinbase [COIN] and expand internationally, purchasing a UK crypto firm in April. FTX also has plans for expansion, having opened a waitlist for a new stock trading platform earlier this year.

Bankman-Fried is one of the wealthiest people in the crypto industry. In April, Forbes estimated his net worth to be $24 billion, making the 30-year-old the second richest person in the industry behind Binance boss Changpeng Zhao. However, the estimate has been reduced to $21 billion due to the recent market rout.

Bankman-Fried has been a proponent of Robinhood, having previously complimented the company and its brand.

“Robinhood barely even needs to advertise; their name conveys their brand and message without the need for any additional colour.”

Robinhood Stock up, FTX Token Down

Shares in the company have been boosted by the move having surged almost 24% in after-hours trading. HOOD prices are currently $10.60, having jumped from around $8.50 on Thursday.

However, the stock has been on a downward slide for the past ten months. HOOD hit an all-time high of around $55 in August but has dropped 80% from that level to current prices.

The FTX token FTT has made a marginal 2% gain on the day, but it has also been battered in the broader crypto market crash. FTT was trading at $30.89 at the time of writing, having dumped 23% over the past fortnight. The exchange token is currently down 64% from its September 2021 all-time high of $84.

Robinhood To Buy London Based Crypto App as Part of Europe Expansion

Key Insights:

  • Robinhood is set to purchase the London-based fintech app, Ziglu.
  • Through Ziglu’s crypto capabilities, Robinhood will expand into UK and Europe.
  • This is Robinhood’s second major announcement after listing Shiba Inu, Solana, and other assets on its exchange.

Robinhood gained prominence during its GameStop debacle but has since managed to make a name for itself in the crypto space with its cryptocurrency exchange Robinhood Crypto.

Thus, the company is now focusing on simply expanding on the same with its decisions to build on the existing momentum.

Robinhood Comes to the UK

As per a report by CNBC, Robinhood yesterday finalized the purchase of Ziglu, a fintech application based in London that provides crypto trading services for Bitcoin and other cryptocurrencies.

This deal will play an essential role in Robinhood’s plans of expanding its presence in the United Kingdoms and Europe, which it has been eyeing for a while now.

Two years ago, Robinhood was gunning for occupying these territories but had to terminate the plans citing business at home as its priority instead of expanding overseas.

This deal will be of massive value for the platform, which has noticed a steady decline in its monthly active users in quarter 4 of 2021, losing over 1.3 million users in 3 months.

Commenting on losing the market share and the potential that the new deal holds, the Chief Executive Officer (CEO) of Robinhood, Vlad Tenev, said,

“Together with the Ziglu team, we’ll work to leverage the best of both companies, exploring new ways to innovate and break down barriers for customers across the UK and Europe.”

Robinhood’s Attempts at Crypto

Ziglu’s purchase is the second most significant step taken by Robinhood this month, as just last week, FXEmpire reported on the exchange’s announcement of adding Shiba Inu, Solana, Compound, and Polygon’s tokens to Robinhood Crypto. 

A few days later, CEO Tenev was reported discussing the possibility of Dogecoin becoming the ‘Currency of the Internet’, saying the coin’s inflation rate is way below that of USD (Dollar) and that by lowering fees and increasing the number of transactions per second, it can achieve that status.

Thus, it seems like Robinhood will not stop until it becomes a major crypto market player worldwide.

Dogecoin Rallies As Robinhood CEO Calls It ‘Currency of the Internet’

Key Insights:

  • Robinhood’s CEO Vladimir Tenev discussed the possibilities of DOGE becoming the ‘Currency of the Internet.’
  • DOGE is noting many mentions on social platforms recently, including the effects of Elon Musk’s Twitter purchase bid.
  • Consequently, Dogecoin has been up by over 10.15% in the last four days.

Dogecoin is becoming a paragon of rags to riches of the crypto world now that people advocate for it, calling it the future. In doing so, DOGE is being established as a prime cryptocurrency and as the go-to investment vehicle for novice crypto users.

Dogecoin – The Future??!

In my opinion, no. It doesn’t deserve to be. It does not hold the potential, and the only development it is seeing today is occurring on the back of Elon Musk’s support.

But according to the CEO of Robinhood, Vladimir Tenev, Dogecoin has what it takes to become the ‘Currency of the Internet.’

In a Twitter thread, the CEO “VLAD” discussed the altcoin network’s possibilities and how it can be tapped.

The first and foremost is the transaction fees. Although DOGE already has one of the lowest fees of $0.003 as per VLAD, it would need to be significantly lesser.

Secondly, the block time of 1 minute is too long for a network that aims to establish a global presence. Instead, a 10-second block would be much more suitable to conduct faster transactions and keep miners from building competing chains, thus saving power consumption.

Furthermore, he stated that to conduct faster transactions with VISA, which clears over 650,000 TPS (Transactions Per Second), DOGE would need to increase its potential by 10000. Similarly, moving to a bigger block could also make transactions quicker on the chain.

He also addressed the concerns and criticism of DOGE, one of which discussed the lack of deflation in Dogecoin. To this, Tenev replied,

“Another criticism of DOGE is that it’s inflationary and the supply is infinite, as opposed to Bitcoin’s finite supply of 21M coins. ~5B new Doge are created every year, and the current supply is about 132B. This results in a current inflation rate of <5% – less than USD!”

Dogecoin Is Better as a Social Coin

Dogecoin has always relied on significant crypto developments to make a move in the market. Be it Elon Musk, aka DOGEFather’s promotion of crypto or a simple announcement.

But the one from yesterday truly broke the market as Elon Musk put down a $41 billion bid to buy Twitter.

After denying the Board Of Directors’ position, Elon Musk has decided to buy it off entirely and its effects to bring Twitter to the free speech standard.

And since the announcements, DOGE’s price has only been going higher as it is evident that the supporters are this cryptocurrency’s biggest strength.

Dogecoin’s price has risen by over 10% i the last few days | Source: TradingView

Shiba Inu Rallies by 35% As Robinhood Adds SHIB, SOL, COMP & MATIC

Key Insights:

  • Robinhood Crypto added Shiba Inu, Solana, Compound, and Polygon tokens to its list.
  • SHIB consequently led the market rally with a 35% rise.
  • Investors looking to jump in must be wary of Shiba Inu’s volatility.

As crypto adoption grows, we witness the rise of blockchains and Decentralized Finance (DeFi) protocols which have an impact on the growth of the crypto space.

But then again, others, such as Shiba Inu, happen to get caught in the bullish crossfire and reach where it is today. And what happened today is all thanks to another emerging platform, Robinhood.

Shiba Inu on the Charts

Robinhood Crypto, a rising cryptocurrency exchange, added four new tokens to its list of tradable assets. The ones to make the cut included Shiba Inu, Solana, Compound, and Polygon’s native tokens.

As the announcement came to light, it took less than a few hours for the hype surrounding the news to reflect on the assets’ price action, and as always, Shiba Inu was the first to react. Not only was it the first but also the most to react.

Within the day, SHIB began climbing the charts, and in less than 2 hours, its price shot up by almost 36.88% at one point. However, it came back down soon after to close on a 15.8% rise, and in doing so, it negated the 9% fall in price from the day before.

Shiba Inu shot up by almost 35% at one point

 

Nevertheless, apart from SHIB, all the other assets ended up performing disappointedly. The only coin out of the four, other than SHIB, that fared well was the DeFi token Compound which maintained a 5.22% rise of the 10% ceiling.

Trading at $123.2, it did not manage to recover the fall from yesterday but traded better than the likes of Solana and Polygon.

Compound’s price action was up by 5.22%

SOL on the daily chart did not do any wonders despite the expectations investors had from it, as the token failed to maintain more than 1% of the rise today.

And Polygon’s MATIC, too, observed a similar movement since the broader did not play in the altcoin’s favor. Whether or not they manage to perform better tomorrow is a different thing.

Shiba Inu on the Cards

Naturally, since the meme coin marked such a huge rally, it is bound to notice increased interest from investors. Before that happens, it is important to know that this rise was not organic since the broader market is still exhibiting bearish cues.

And to add to that, the volatility of SHIB also went up with the price, making it further susceptible to price swings. Thus, those looking to enter the SHIB market now should watch out for these signals before making a decision.

Shiba Inu’s volatility is rising quickly | Source: IntoTheBlock

Robinhood Remains Under Pressure To List Shiba Inu

Key Takeaways

  • Robinhood will be reporting earnings soon, with crypto revenues again in focus.
  • Further evidence of declining income will spur fresh calls for the company to list Shiba Inu.
  • A Robinhood listing announcement could give SHIB/USD a substantial near-term boost.

With the start of the Q1 2022 US corporate earnings season fast approaching, retail trading brokerage Robinhood Markets investors will be hoping for some good news that might reverse months of stock price decline. At last Friday’s closing price of $11.22 per share, HOOD has lost more 35% so far since the start of the year. Since its post-IPO record highs last August at $85.00, it has lost more than 85%.

HOOD
Robinhood Market’s 85% pullback from record highs.

Earnings for Q4 2021, as revealed at the end of January, showed crypto-related revenue had collapsed to just $51M, having been as high as $223M in the second quarter. Given the lack of bullishness in cryptocurrency markets since then, analysts are not optimistic that Q1 2022 will show a substantial pick up.

Poor Earnings Argue In Favour of SHIB Listing

Robinhood’s declining crypto trading revenues argue in favor of the listing of popular so-called memecoin Shiba Inu (SHIB). At present, only seven cryptocurrencies are available for trading on the Robinhood app, including Bitcoin, Bitcoin Cash, Bitcoin SV, Dogecoin, Ethereum, Ethereum Classic, and Litecoin.

During Q4 2021, trading in the popular dog-inspired memecoin Dogecoin (which is often touted by Tesla CEO Elon Musk) generated 40% of Robinhood’s crypto revenue. That’s despite the fact that Dogecoin’s market capitalisation is just over $19B, closer to $800B and $400B respectively for Bitcoin and Ethereum.

Offering trading in memecoins is clearly a lucrative business.

Given Shiba Inu’s status as the second memecoin by market cap (at just over $13B), it would seem that an easy way for Robinhood to deliver a quick boost to its revenues would be to list SHIB.

Robinhood can be confident that there is a massive demand for this listing – a petition on change.org for Robinbood to list SHIB has now garnered nearly 560,000 signatures.

Plenty of other cryptocurrency and stock exchanges offer trading in Shiba Inu, including Binance, crypto.com, KuCoin, Coinbase and Webull. However, Robinhood has in recent months cited concerns about regulation as one of the key reasons why it has not expanded the number of cryptocurrencies it has on offer.

But further evidence of declining crypto-related revenues may put pressure on the company to re-examine what many in the crypto community have criticized as an overly cautious stance.

How A Robinhood Listing Might Affect SHIB

The introduction of trading in the Shiba Inu token would likely not just come as a boost to Robinhood’s stock price, but also to SHIB.

The creator of the change.org petition to get SHIB listed on Robinhood noted that “a Robinhood listing would open trading to its 17 million traders”. “It would open up the token to easy trades for many people who may not have or may not be comfortable yet with a crypto exchange,” they continued.

SHIB/USD has spent the majority of 2022 so far trading within 0.000020 to 0.000035 parameters.

Recent listing announcements, such as when Coinbase announced its foray into Shiba Inu, have been associated with jumps in SHIB of at least 25%. Earlier this year, rumours that Robinhood would list SHIB sent SHIB/USD nearly 12% higher intra-day.

Clearly then, where any such announcement from Robinhood to occur, SHIB will lurch higher. Technicians will be eyeing resistance at the 0.000030, 0.000035 and 0.000040 levels.

But a return to the euphoria seen in the fourth quarter of 2021, where the price of each Shiba Inu token reached nearly as high as 0.000090, remains a distant prospect.

SHIB/USD
Major near-term levels of resistance for SHIB/USD.

Against the macro backdrop of hawkish central banks raising interest rates to drive down inflation and thus dampening speculation in risk assets, of which SHIB is included, the prospects for a prolonged bull run aren’t too great right now.

Robinhood Is Down By 7%, Here Is Why

Key Insights

  • Goldman Sachs downgrades Robinhood due to slower user growth and weakening user engagement. 
  • Analyst estimates have started to move higher but failed to provide any support to the stock.
  • The rising interest rate environment will likely continue to put pressure on Robinhood shares. 

Robinhood Falls After Goldman Sachs Downgrade

Shares of Robinhood  gained strong downside momentum after Goldman Sachs downgraded the stock from Neutral to Sell.

According to Goldman Sachs, the company is facing weaker user growth, while user engagement is slowing down as well.

At the end of March, Robinhood announced that it would expand pre-market trading to 7 a.m. from 9 a.m. ET and after-hours trading to 8 p.m. ET. This announcement served as a major positive catalyst for the stock, which was up by 25% on the news.

However, the stock failed to develop additional upside momentum and found itself under significant pressure at the start of this month. Goldman Sachs’ downgrade served as an additional bearish catalyst and pushed Robinhood shares below the $11.50 level.

What’s Next For Robinhood Stock?

Analysts expect that Robinhood will report a loss of $1.25 per share in the current year and a loss of $0.67 per share in the next year, so the company is not expected to become profitable anytime soon.

It should be noted that analyst estimates have recently improved due to the company’s above-mentioned announcement. However, this improvement was not sufficient enough to provide any material support to the stock.

The yield of 10-year Treasuries has already reached the 2.70% level, and it has good chances to move closer to the 3.00% level amid high inflation. The rising interest rate environment is bearish for unprofitable companies, and it remains to be seen whether speculative traders will rush to buy Robinhood stock at current levels.

For a look at all of today’s economic events, check out our economic calendar.

Gemini, Chainalysis, and Robinhood Join Crypto Market Integrity Coalition

Key Insights:

  • A total of 30 companies have joined the Crypto Market Integrity Coalition (CMIC).
  • CMIC signatories have signed a pledge to combat market manipulation.
  • Deltec, Chainalysis, and Robinhood are among the new joiners.

The Crypto Market Integrity Coalition (CMIC) was founded two months ago by 17 cryptocurrency exchanges, firms, and industry associations across the globe. Recently, another 13 firms joined CMIC, making it a 30 member body.

CMIC’s Onboards New Members

Risk-monitoring software company Solidus Labs convened the CMIC. CMIC has been urging digital currency companies to sign a ‘market integrity’ pledge that acknowledges the potential for fraud in the cryptocurrency space and the need for the industry to protect investors.

Recently, 13 major players in the crypto industry have joined forces with the CMIC intending to prevent market manipulation. By joining CMIC, crypto institutions provide regulators with additional assurances that investment in the crypto markets is safe.

The new signatories include crypto analytics firms Chainalysis, TRM, Elliptic, and exchanges like Gemini, Robinhood Markets, Nexo, and Bitpanda. These firms have joined CMIC’s 17 original members, including Coinbase, BitMEX, and Solidus Labs, bringing the total number of members to 30.

Solidus Labs Vice President of regulatory affairs Kathy Kraninger said that membership is open to all industry participants in an introductory video. Kraninger further added,

“To enable the promise of crypto and DeFi, we must as an industry be vocal about our commitment to address and mitigate the risks.”

The Need For A Safer Crypto Space

Participants and firms alike have voiced the need for a secure and protected crypto space. Hacks and security breaches have been more commonplace now. Ola Finance saw over $3.6 million siphoned off the protocol in an exploit in early April.

CMIC was formed to crack down on market manipulation to instill trust in the burgeoning digital asset industry. Founding members include prominent industry players such as Coinbase, BitMEX, Huobi Tech, Anchorage Digital, the Chamber of Digital Commerce, and CryptoUK.

The group aims to unite the disparate crypto groups behind its business principles. The coalition plans to advance training programs and encourage a dialog with regulators.

Apart from CMIC, other crypto industry advocacy groups include GoodFi, launched by Radix in 2021. GoodFi focuses on decentralized finance (DeFi) education, research, and best practices. It has 55 member organizations and hopes to get 100 million people to put at least a dollar into DeFi by 2025.

Another one is the Crypto Open Patent Alliance launched in 2020 by Square, now known as Block. This group has 33 members and shares a patent library to defend the crypto community against patent trolls and aggressors.

Why Robinhood Stock Is Up By 25% Today

Key Insights

  • Robinhood launches new extended hours. 
  • The company says that it is working towards 24/7 investing. 
  • Analyst estimates may move higher as new trading hours should boost revenue.

Robinhood Stock Rallies After The Company Extends Trading By Four Hours

Shares of Robinhood gained strong upside momentum after the company announced that it decided to extend trading by four hours.

Robinhood noted: “By expanding pre-market trading to 7 a.m. from 9 a.m. ET and after-hours trading to 8 p.m. ET, we’re adding an extra four hours for orders to be filled”. Previously, the company offered extended hours trading from 9 a.m. to 9:30 a.m. ET and 4 p.m. to 6 p.m. ET. Robinhood also noted that it was working towards offering 24/7 investing.

The market’s reaction was very strong, and the stock was up by 25%. The recent rally in meme stocks like GameStop and AMC may have also provided some support to Robinhood stock.

What’s Next For Robinhood Stock?

The company’s decision to boost trading hours will increase its revenue, so it’s not surprising to see that traders decided to buy the stock on the news.

Currently, analysts expect that Robinhood will report a loss of $1.26 per share in the current year and a loss of $0.77 per share in the next year, so the company is not expected to become profitable in the near term.

Robinhood stock declined from the $85 level in August 2021 to the $10 level in mid-March 2022, so the company feels the pressure to boost revenue and get closer to profitability.

It remains to be seen whether analyst estimates will materially improve in the upcoming weeks, but Robinhood is clearly making a move in the right direction. At the same time, it should be noted that the stock will likely remain highly volatile in the upcoming trading sessions as traders will try to evaluate whether the strong upside move was justified.

For a look at all of today’s economic events, check out our economic calendar.

Circle’s Value Jumps by 100% to $9 Billion Post New Agreement

One of the biggest names in the crypto space, Circle announced that it will be terminating the existing business combination with Concord Acquisition Corp and will now enter into an agreement with new terms.

This change of agreements is the reason behind Circle’s increased valuation.

Circle Squares Up

Best known for issuing the second biggest stablecoin in the world and the fifth-biggest cryptocurrency in the world, the USD Coin (USDC), Circle has revamped its terms with Concord today. 

Back in 2021, Circle had entered into a definitive business combination agreement with Concord, a publicly-traded SPAC (special purpose acquisition company).

This agreement’s expiration date is set on April 3 2022 and because due to unspecified reasons it could not be completed, the companies will simply be replacing the new deal with the older business agreement.

Once successfully executed, this agreement would allow both the companies to be listed on NYSE under a holding company tradable under the ticker “CRCL”

On the prospect of soon becoming a public company, the Co-founder and CEO of Circle Jeremy Allaire stated:

“Being a public company will further strengthen trust and confidence in Circle and is a critical milestone as we continue our mission to build a more inclusive financial ecosystem. Making this journey with Concord under our new agreement is a strategic accelerator.”

In conclusion, the improvement in Circle’s financial outlook and competitive position owing to the growth of USDC has resulted in Circle’s overall value rising by 100% from the previous $4.5 billion to $9 billion.

Additionally, as per an announcement today, Circle joined the likes of Coinbase, Robinhood, Gemini, Fidelity Digital Asset Services, Gemini, and more in launching TRUST.

The platform has been created to serve as an industry-wide solution to comply with the mandates of the Travel Rule while still keeping users’ personal details secure.

The Growth of USDC

USDC currently has a market cap of $52.6 billion. This time last year the same market capitalization was sitting at $7.29 billion.

Put simply this growth translates to a 621.53% year-on-year growth and if USDC continues to rise at this rate by this date in 2023 the market cap would be sitting at $379.52 billion.

Although the market dip of February 10 did result in a slowdown in USDC issuance, the same would improve once the market goes back into either posting a green candle or simply consolidating at current levels without dropping further.

USDC circulation slowed down slightly post the February 10 market dip | source: Messari

Coinbase, Robinhood & Others Launch TRUST To Deal With Travel Rules

As described by themselves, TRUST aims to be an industry-wide solution that has been created in order to comply with the mandates of the Travel Rule.

Through this, the member cryptocurrency exchanges can easily and securely provide requisite data necessitated by the FinCEN.

Time to TRUST?

According to the regulations set by the Travel Rules, every financial institution that is facilitating transactions among its customers is required to share certain data with the FinCEN (Financial Crimes Enforcement Network).

Thus, now even cryptocurrency exchanges have been mandated to follow the rule since it acts as a medium of such transactions.

Furthermore, the rules explicitly state a list of details such as the name, account number, address, identity, etc. which are compulsory for the intermediary financial institution to pass on to the authorities.

Thus, a myriad of cryptocurrency exchanges joined hands in order to find a much more secure way to share these details which led to the birth of TRUST.

The present members of TRUST include Anchorage, Avanti, Bitgo, bitFlyer, Bittrex, BlockFi, Circle, Coinbase, Fidelity Digital Asset Services, Gemini, Kraken, Paxos, Robinhood, Standard Custody & Trust, Symbridge, TradeStation, Zero Hash, and Zodia.

The TRUST platform uses ingenious methods to ensure the personal details are not put at risk in any way. Since TRUST only acts as a secure medium, sending required information through an end-to-end encrypted channel.

Secondly, TRUST has stated to have established a mechanism in play that would make it compulsory for the receiving crypto exchange to have proof of their ownership of the incoming crypto information.

The announcement stated,

“The launch of TRUST resoundingly demonstrates that top-tier compliance can go hand-in-hand with a core industry value–robust protection of customer privacy and security.”

The TRUST also added that they aim at reaching international exchanges as well when it begins with its expansion plan since it does not plan on limiting just to US-licensed exchanges.

The SEC’s Hand

Recently one of the members of TRUST, BlockFi, faced SEC’s wrath as it received a $100 million fine, the biggest in SEC’s history. The penalty came due to non-compliance with regulatory laws in the country.

Thus considering, the income tax on crypto, legislation for insuring “Qualified Stablecoins” and now TRUST, it seems like authorities and people are both looking at creating a strong adoption case for crypto as soon as possible.

Shiba Inu Traders Keep Waiting for Follow-Up Rally

Shiba Inu gained strong upside momentum at the beginning of February and quickly moved from the $0.000021 level to the $0.000035 level. However, it failed to gain additional momentum and stabilized near $0.000030, leaving traders in doubt whether the rally will be continued.

Shiba Inu Needs More Upside Catalysts, and the Coin’s Team Knows This

Shiba Inu’s move into Metaverse and the recent news about the Shiba Inu-themed restaurant have clearly provided some support to the dog coin, but it needs more catalysts to move higher.

A Robinhood listing may have served as such a catalyst, but the popular broker will likely wait for the outcome of SEC v. Ripple before listing Shiba Inu or other coins as it is worried that they may be viewed as unregistered securities by the SEC.

A new listing would have provided additional support to Shiba Inu, but it remains to be seen whether Robinhood or other major players are ready to list the coin. Without a material catalyst, Shiba Inu will remain in the hands of general market sentiment and trade in line with other leading coins.

Consolidation Period May End Soon

shiba inu february 16 2022

Shiba Inu has recently made an attempt to get to the test of the resistance level near $0.000033, but failed to develop sufficient upside momentum and pulled back.

The nearest material support level for Shiba Inu is located at $0.00002950. A move below this level will push Shiba Inu towards the next support level at the 50 EMA at $0.00002860. In case Shiba Inu declines below the 50 EMA, it will head towards the next support level at the 20 EMA at $0.00002790.

On the upside, Shiba Inu needs to settle above the resistance at $0.00003230 to have a chance to gain upside momentum in the near term. The next resistance level for Shiba Inu is located at $0.00003390. If Shiba Inu manages to settle above this level, it will head towards the next resistance near the recent highs at $0.00003550.

Australia’s SelfWealth to offer Crypto Investment Options This Year

A publicly listed company, SelfWealth, will become the first online share trading platform to offer crypto trading services in Australia. 

This came after the company partnered with the local cryptocurrency exchange, BTC Market. The move means that the 120,000 customers of SelfWealth will now be able to invest in crypto using the platform.

SelfWealth Offers Crypto Investments

According to the CEO of BTC Markets, Caroline Bowers, investors will be able to invest in five crypto assets starting from the second quarter of 2022. 

However, the finalization of the offerings depends on the approval of AUSTRAC, the leading financial regulator in the country. 

None of the parties involved also disclosed which crypto assets will be available for the investments. But one can expect that top assets like Bitcoin and Ethereum would be included in the offering.

SelfWealth also announced the partnership on its Twitter page and claimed it’s a result of its customers’ high demand for exposure to the crypto industry. 

The CEO, Cath Whitaker, stated that the company carried out exhaustive due diligence before picking its crypto partner. 

According to her, “In BTC Markets, we have found a partner that we want to open up to our 120,000 active investing members.” She added that the decision to partner with BTC markets is to make cryptocurrency investing as seamless as possible.

Interest in Crypto Remains High

SelfWealth is the fourth biggest online brokerage platform in Australia. The company has a similar operation to Robinhood and is worth $8 billion. 

It first showed interest in cryptocurrency last July, when a report showed that 30% of its users have crypto in their portfolio while 38% think of adding crypto later on.

On its part, BTC Markets is also one of the biggest crypto exchanges in Australia. According to the exchange, more than 300,000 Australians have traded over $21 billion worth of crypto on its platform.

Partnerships between regulated financial organizations and crypto platforms further show the growing mainstream adoption of the space. 

Several online brokerage companies have added crypto to their offerings as the demand for variety increases. A good example is Robinhood which started offering Dogecoin trading in 2021. 

Since then, companies like StockTwits and others have also pivoted into offering crypto-related services to their customers.

Robinhood, Ripple, Coinbase, Biggest Crypto Lobbying Spenders: Report

The last year has been a game-changer in terms of crypto adoption with Bitcoin making a new ATH, ETFs getting approval, and much more but that isn’t where the story ends.

As per the recent US lobbying expenditures, it can be noted that crypto lobbying spending grew significantly over the last few years. 

Crypto Lobbying on the Rise

Of late, cryptocurrency and blockchain businesses have gotten concerned about the future of the asset class and of regulators who would be in charge of overseeing their respective industries.

Reportedly, money spent on crypto lobbying increased by 116% in 2021, with $4.9 million being leveraged to try to influence lawmakers and public authorities. 

FXempire, Robinhood, Crypto, Coinbase, XRP, Ripple
Source: Crypto Head

Data released in a report by the digital assets-focused website Crypto Head highlighted that since 2017, the total amount of money spent on lobbying has increased significantly.

Lobbying expenditures went from $200,000 to $920,000 in 2018, representing the largest percentage increase. However, the most sizeable increase happened between 2020 and 2021, with expenditure rising by $2.65 million more than doubling in comparison to the previous year. 

By the end of 2021, total crypto lobbying expenditures peaked at $9.56 million, the highest in over five years. Reports further highlighted that if the yearly growth rate continues to increase in 2022, the aforementioned figure could reach $15 million or more by the end of the following year. 

Some of the top names in the crypto industry like Robinhood, Ripple, and Coinbase dominated the amount spent on crypto lobbying. 

The Biggest Spenders

The report underlines that since 2017, Ripple Labs, the developer of the open-source protocol and remittance system Ripple, is the biggest-spending crypto company in the US with lobbying expenses totaling nearly $2 million. For the year 2021, Coinbase was the biggest-spending lobbying blockchain company, with expenses totaling over $1.3 million.

The study further notes that Ripple Labs is ‘possibly the most influential crypto company in the US when it comes to affecting government policy and regulation.’

Notably, Ripple Labs has been under a lawsuit by the US Securities and Exchange Commission since late 2020. The regulators have alleged that the firm was involved in a $1.3 billion unregistered securities offering of XRP.

Furthermore, crypto-friendly stock trading app Robinhood spent close to $1.35 million in contribution to crypto lobbying expenditures.

Now since Robinhood only introduced cryptocurrency trading options on its platform in January 2018 the high expenditure on lobbying is indicative of how quickly the company has grown into a major player in the cryptocurrency market.

Other big industry lobbyists include the industry’s advocates group Blockchain Association, and blockchain platform Block.one. The sheer rise in the crypto industry’s spending on lobbying notably comes in response to the crypto market attracting more attention from US regulators.

StockTwits Partners FTX to Launch Crypto Services

Finance-focused social media platform, StockTwits has taken a step further into the industry with plans to launch crypto and derivatives trading services. 

FTX.US Partnership

The platform is partnering with FTX.US to enable trading. With this new service, StockTwits users will trade crypto and derivatives directly from the app.

The platform, which was originally a social media app for investors, has been in existence since 2008. It claimed to have popularized cashtags, i.e. the combination of dollar signs with a stock ticker symbol $GOOGL, $TSLA, $COIN, etc.

It shot into the limelight in 2021 during the short squeeze frenzy involving AMC and GameStop stocks. Along with subreddit r/Wallstreetbets, StockTwits helped popularize the meme stock movement last year. The retail investors’ short squeeze led to hedge funds losing billions on short positions.

At that time, StockTwits was one of the discussion platforms for investors. The New York-based company has the tools and data that encourage investors and traders to interact and discuss. 

But in recent times, crypto discussions have become prominent. Clearly, the team behind the platform has now seen it can serve more than one purpose. 

With 6 million registered users and 5 million active monthly users, the new feature means that millions of retail investors will now have access to crypto. 

Eyes Crypto and Derivatives Trading

It also means that StockTwits joins the list of companies involved in the short squeeze saga who have now integrated crypto. Robinhood, GameStop, and AMC have already integrated crypto into their services.

According to the CEO, crypto trading will allow it to better serve users. With “community and data” already in place, “the addition of execution” completes the production expansion.

The partnership with FTX means that StockTwits means that the platform will become a sort of Robinhood for retail investors. 

But its social media features and data analytics means it can distinguish itself from other retail trading platforms. While it’s starting with crypto, it intends to expand into derivatives trading later.

Dogecoin Settles Back in Top-10 and Solidifies Its Lead Over Shiba Inu

While Dogecoin has been under pressure in recent weeks, it managed to get back into the top-10 of cryptocurrencies by market cap and found itself on the 9th place thanks to the recent problems of LUNA.

Dogecoin Remains the World’s Leading Meme Coin

The performance of Dogecoin shows that some traders still believe in the potential of the meme coin market segment. In fact, Dogecoin managed to increase its lead over Shiba Inu, which remained under pressure as traders waited for Robinhood’s decision on its potential listing.

According to CoinMarketCap, Dogecoin has a market capitalization of $18.2 billion, while Shiba Inu’s market cap has declined to $11.3 billiion, putting the meme coin into the 15th place.

At some point, it looked that Shiba Inu was ready to defeat Dogecoin and become the world’s biggest dog coin. The first mover advantage is very important in crypto, and the world’s leading cryptocurrency highlights this thesis. There are more than 17,000 cryptocurrencies in the world, but Bitcoin accounts for roughly 43% of total crypto market cap.

What’s Next for Dogecoin?

Dogecoin will remain dependent on general crypto market performance in the near term. In case Bitcoin gets to new lows and tests the $30,000 level, Dogecoin will find itself under material pressure and may slip below the $0.10 level.

In the long term, the fate of Dogecoin will depend on whether meme coins will remain popular as an asset class. Trends change fast in the crypto world, and the status of the world’s leading meme coin may not be sufficient enough to provide support to Dogecoin in the future. In fact, Dogecoin reached its all-time highs back in May 2021 and has been moving lower for many months.

A position in the top-10 list increases Dogecoin’s visibility and highlights continued support from crypto enthusiasts, but the dog coin will certainly need more catalysts to have a chance to gain sustainable upside momentum.

Robinhood Loses 79% Crypto Revenue as CEO Denies Memecoins Listing

The once-controversial trading platform jumped into the cryptocurrency trend last year and manage to churn a significant amount of money just from crypto trading.

It has since, however, reduced drastically owing to certain decisions from the Robinhood management.

The 7 Coins on Robinhood

In the wake of these losses, the CEO of Robinhood, Vlad Tenev made a statement when asked about the rumors of Shiba Inu’s listing. Tenev explicitly said:

“We want to avoid triggering SEC registration requirements for cryptocurrencies…We feel very confident about the coins that we have on the platform.”

Even though SHIB isn’t mentioned directly, the choice of words makes it apparent that the platform does not intend on adding the meme coin anytime soon. The dialogue began after Robinhood witnessed continuous losses in the last quarter as well witnessing a 6% decline from the quarter before.

In the second quarter of 2021, Robinhood brought in over $223 million in revenue which fell to $51 million, as reported by Bloomberg. Of this $51 million 40% revenue came from Dogecoin alone, which persuaded people to demand the listing of one of the most trending coins back then, Shiba Inu.

The demand came since of the seven coins that Robinhood offers to its customers only one of them was/is the face of the trend – Dogecoin. Three of the other remaining six coins included Bitcoin, Ethereum, Litecoin, and the last 3three were Bitcoin Cash, Bitcoin SV, and Ethereum Classic.

Thus it becomes apparent why the platform is losing revenue as not many people are particularly interested in conducting trades in the latter 3 coins.

Robinhood Losing More Than Revenue

For the last 4 months, Robinhood’s share prices have been constantly plummeting. The platform’s ticker was trading at $46.69 towards the end of September. Since then HOOD has plunged by 77.08% to fall to $10.77 as of press time. 

Robinhood prices are down by 77% in 4 months – Source: FXEMPIRE

While the crypto market is still under consolidation, Robinhood still has an opportunity to draw in more investors by adding worthy coins like Solana, Cardano, and XRP.

Robinhood Will Likely Wait for Outcome of SEC v. Ripple Before Listing Shiba Inu

Many traders wanted to know whether Robinhood will support Shiba Inu, but the broker’s earnings report and the subsequent earnings call left everyone in the dark.

Robinhood Undecided on Shiba Inu

Earlier this month, Robinhood CFO said that the company was not ready to increase its presence in the crypto market segment, which was a major disappointment for Shiba Inu fans who hoped that the popular broker would finally list the meme coin.

During the earnings call, the company’s CEO Vlad Tenev said that Robinhood was proactively engaging with regulators to respond to customers’ demands to list more cryptocurrencies.

However, Robinhood was worried that a large number of coins could be considered unregistered securities by the SEC. As a reminder, the SEC vs Ripple court battle is still ongoing, and its results could have a huge impact on the crypto market, especially if SEC wins the case.

Traders Will Likely Have To Wait for the Results of SEC v. Ripple Case

Robinhood added that it intended to add more coins to the platform, but that it would be acting prudently. At this point, it looks that legal concerns are the main obstacle in the way of new listings.

It is highly likely that Robinhood, which is still not profitable and whose stock is down by almost 90% from 2021 highs, will avoid taking too much risk on the crypto front.

This is bad news for Shiba Inu bulls who desperately need a positive catalyst as the meme coin continues to slide amid general crypto market weakness and rising popularity of NFTs, which may have served as a substitution to meme stocks and meme coins for some traders and investors.

I’d also note that Shiba Inu bulls should not view the potential Robinhood listing as some kind of silver bullet that will solve all problems. Dogecoin is already available on Robinhood and support from the company’s clients failed to provide enough support to the meme coin in recent months.

Blackrock to Track Blockchain and Tech with new ETF

Amidst the current crypto market chaos, positive news appears to go unnoticed at present. The global financial markets remain focused on inflation and FED monetary policy, which has contributed to the crypto market sell-off.

Uncertainty brings opportunity, however, as the lines between mainstream and crypto continue to blur.

Earlier this month, we had reported Block Inc.’s (SQ2) listing on the Australian Stock Exchange (ASX). For the ASX, the 20th January listing was the first crypto-related listing. It wasn’t the best of starts, however, with negative sentiment towards cryptos leaving Block Inc. down 2.34% on its 2nd day of trading.

SQ2

Block Inc. isn’t the first crypto-related listing, however. Other listed companies include:

  • Coinbase Global Inc. (COIN), traded on the NASDAQ.
  • Bit Mining Ltd (BTCM), traded on the New York Stock Exchange.
  • HIVE Blockchain Technologies Ltd (HIVE), traded on the NASDAQ.
  • Bitfarms Ltd (BITF), traded on the NASDAQ.

For mainstream trading platforms, exchanges are also getting in on the crypto act. This week, news hit the wires of Robinhood launching its crypto wallet beta program. While Robinhood users had previously been able to trade cryptos, the launch of the wallet will eventually mean that users can also deposit and withdraw cryptos. This was previously not possible, with investors able to only buy, hold and sell.

Blackrock Files for iShares Blockchain and Tech ETF

On Friday, Blackrock filed for the registration of the iShares Blockchain and Tech ETF. The ETF “seeks to track the investment results of an index composed of U.S and non-U.S companies that are involved in the development, innovation, and utilization of blockchain and crypto technologies”. The Fund will track the investment results of the NYSE FactSet Global Blockchain Technologies Index.

On Friday, the NYSE FactSet Global Blockchain Technologies Index slid by 10.32% to end the day at 172.33. Year-to-date, the Index was down by 24.15%

The move into the crypto ETF space is aligned with Blackrock’s apparent strategy on cryptos. According to reports over the summer of 2021, Blackrock had close to $400m invested in Bitcoin (BTC) mining stocks.

Snip - NYFSBLC 172.33 ( 10.32%) NYSE FactSet Global Blockchain Technologies Index Launch Google Fina

Robinhood Crypto Wallet Beta Program Goes Live

Since late last year, there’s been plenty of news on Robinhood and its crypto plans.

At the end of December, news had hit the wires of Robinhood launching a beta version of its wallet in 2022. Robinhood had reportedly first announced testing its digital wallet feature back in September. The expansion into the crypto space was set to start with enabling the deposit and withdrawals of Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE).

Amidst increasing crypto regulatory scrutiny, Robinhood aims to take the battle to crypto exchanges. According to Statista, Robinhood has seen its number of users surge from just 500,000 in 2014 to more than 20 million in 2021. By contrast, the world’s largest crypto exchange Binance (based on 24-hour volume) has an estimated user base of 28.6m as at October 2021.

Robinhood Officially Launches Crypto Wallet

On Thursday, Robinhood announced the release of its digital wallet beta program. Initially, the wallet will be available to just 1,000 waitlisted customers. The platform expects the program to extend to 10,000 waitlisted customers by March.

The wallet will allow customers to send and receive their crypto from Robinhood to external crypto wallets. Having only previously supported the buying and selling of cryptos, Robinhood crypto holders can fully connect to the greater blockchain ecosystem for the very first time.

Key features of the wallet beta program include:

  • Daily withdrawal limit of $2,999.
  • 10 transactions per day.
  • Two-factor authentication.

During the Beta program, Robinhood also intends to:

  • Add QR scanning.
  • Improve the transaction history interface.
  • Add block explorer support.
  • Additionally, users will be able to “calculate the Dollar amount of crypto to send/receive in terms of Dollar amounts”.

At the time of writing, Robinhood supports the buying and selling of 7 cryptos. These are Bitcoin SV (BSV), Bitcoin Cash (BCH), Bitcoin (BTC), Dogecoin (DOGE), Litecoin (LTC), Ethereum Classic (ETC), and Ethereum (ETH).

Robinhood’s Launch Coincides with Increased Regulatory Scrutiny

The heavily anticipated launch of the wallet beta program comes at a tricky time for the crypto market. Since late last year, regulatory chatter and activity has been on the rise, which has tested support for cryptos.

Just this week, news hit the wires of SEC Chair Gary Gensler warning of a crackdown on digital assets this year. The SEC Chair talked of more direct regulation of crypto trading platforms in the coming months. Gensler’s warning follows recent calls from the Bank of England, the IMF, and India’s Prime Minister for a global framework to regulate cryptos.