In the latest sign of major interest in cryptocoin trading, over a million people have subscribed to the waitlist of Robinhood crypto, just four days after its launch. Robinhood, which is a trading platform that operates on a no-fee basis, announced it was rolling out commission-free trading of cryptocoins on its platform. However, the service will only be offered in five states to start with. Within just 24 hours of this announcement, hundreds of thousands of people had indicated that they wanted to be notified of early access.
By 1 pm ET, on Monday, over a million people had subscribed to early access notification. If all those people eventually sign up to the platform, the customer base will grow by over 30 percent from its current customer base of about 3 million users.
Tom Lehrkinder, a senior analyst at Tabb Group, said,
Despite the downturn in price and the fraud in Japan, the interest in the cryptospace remains very high.
He added that the number of futures commission merchants executing and settling Bitcoin futures contracts was also growing.
How Bitcoin Prices Have Fared Recently
The price of Bitcoin skyrocketed towards the end of last year from just $1000 at the start of 2017 to over $19,000 towards the end of the year. This was mainly driven by a growing interest from investors. It led to growing demand from institutional investors for futures contracts, which were launched in December 2017 by CME, the largest futures exchange, and its competitor Cboe.
Coinbase, the largest cryptocoin exchange in the US, saw its user total more than double, from just 5 million towards the end of 2016, to over 13 million by the end of 2017. Coinbase has yet to comment on the potential launch of the Robinhood Crypto app. Robinhood itself has remained tight-lipped on the development since its Thursday announcement.
According to the co-founder of Blockchain Capital, this surge in subscriptions proved that there was a generational interest in digital coins. This is backed by facts, which shows that about a third of all millennials prefer to invest in Bitcoin rather than stocks. In addition, the data released by Robinhood shows that about 8 percent of its users are between 18 and 35 years.
Robinhood Should Expect Some Headwinds
When Robinhood eventually launches its crypto trading service, it is going to encounter some major growing pains, which it will have to overcome. A good example of these problems is Coinbase, which made over a billion dollars in revenue last year. Despite having all of this cash, the company found it hard to sustain the high trading volumes, and trading was sometimes not even possible. However, Coinbase has yet to comment on how accurate those figures are.
What do you think about the enthusiasm surrounding the Robinhood crypto app? Leave us your thoughts in the comments section below.