The competitive landscape for cryptocurrencies is heating up in the United States. Zero-commission startup exchange Robinhood just announced on Twitter its expansion into Colorado. The trading platform unveiled commision-free trading for leading cryptocurrencies bitcoin and Ethereum in the western state. In addition to cryptocurrencies, the Palo Alto, Calif.-based trading platform also supports stocks, ETFs and options.
Colorado, which is known for its Rocky Mountain peaks and blockchain-friendly legislation, joins a handful of states that extends to California, Massachusetts, Missouri and Montana, all of which Robinhood added in early April as part of a state-by-state rollout that is moving along.
The announcement set off a flurry of responses on Twitter, ranging from requests for the trading platform to add Litecoin to pleas to expand into other states, such as Texas and Florida, to name a couple. Robinhood says “you can move up the list by inviting friends to join” the exchange. But some Twitter followers in the states where Robinhood Crypto has been rolled out say they have yet to gain access to the trading platform and are stuck on a “waiting list.”
The more of a foothold that the zero-fee exchange gains in the United States, the more market share it can take from the likes of Coinbase/GDAX or Gemini — and the more likely it’s going to land on the radar of regulators.
In New York, CCN recently reported that New York Attorney General Eric Schneiderman in a bid for greater transparency has contacted more than a dozen cryptocurrency exchanges with information requests. The development was enough to send the prices of leading cryptocurrencies lower for a while, but they’ve since rebounded.
Meanwhile, digital assets exchange Gemini, which is run by the Winklevoss twins, is prepared to comply. But others like Kraken find the request “insulting.” Cameron and Tyler Winklevoss are also spearheading a self-regulatory group for best practices in the cryptocurrencies industry.
Robinhood hasn’t indicated whether it will support more altcoins beyond bitcoin and Ethereum. It does offer market data for a number of altcoins, however. The exchange, which is popular among millennials, is estimated to be worth as much as $5.6 billion on the heels of its latest funding round with DST Global compared to about $1 billion in 2017 and reportedly surpassing the valuation of its US rival Coinbase.
While Robinhood offers zero-fee cryptocurrency trading, it also offers a premium account dubbed Robinhood Gold that has a monthly flat rate attached and higher deposit limits.
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Last modified: May 20, 2020 8:51 PM UTC