Robinhood, a zero-fee stock trading app, has added Bitcoin Cash and Litecoin to its platform. The app previously only offered Bitcoin and Ethereum to its users. Customers had been requesting Robinhood to consider these two cryptocurrencies – Litecoin founder Charlie Lee even asked them to add LTC in a tweet posted in May. He had also informed his followers that sending emails to Robinhood would certainly help.
— Robinhood (@RobinhoodApp) July 12, 2018
In May 2018, it was announced that Robinhood had raised $363 million in Series D funding from companies such as Capital G, Sequoia Capital, Caufield and Byers (KPCB) and Digital Sky Technologies (DST). Last month, the app introduced “multi-leg” option for better options trading. The blog post stated that people could now invest with lower risk and less capital using the new feature.
The app is currently available in 17 U.S. states including Arizona, California, Colorado, Florida, Massachusetts, Mississippi, Pennsylvania, and Wisconsin. The app has no trading fees and entertains 5 million users, but the company faced major challenges earlier in its run. It was rejected by 75 VCs before it was finally welcomed by a few investors.
Robinhood is the brain-child of Stanford graduates Baiju Bhatt and Vlad Tenev. In an interview with Fortune, Tenev explained that they don’t care if they don’t reap profits, owing to their no-fee policy. He said that such technological innovation can help companies cut down transaction fees and went as far as saying that charging fees is an old tradition. “The thinking behind that is what we’re really doing is building an ecosystem. Right now the products are investing products, so crypto slots in very nicely alongside the 10,000 plus other instruments that people can trade,” said Tenev. The only fees that users have to pay is charged by the US Securities & Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) on sell orders.