shopper commerce and Only a week after the U.S. Securities and Alternate Fee filed a lawsuit towards crypto exchanges Binance and Coinbase, funding app Robinhood has moved to limit holding and buying and selling of sure main cryptocurrencies on its platform. The platform informed Congress earlier this week that it was contemplating providing a cryptocurrency following a lawsuit.
Following Robinhood’s choice to finish help for tokens on the Polygon, Solana and Cardano blockchains, there are two straightforward methods to have a look at it. It is that the corporate is making enterprise selections which can be too cautious or calculated.
After reviewing Robinhood’s newest quarterly outcomes, we really feel there may be some purpose for this choice.
It is nothing new for Robinhood to face authorities scrutiny. Throughout memetic inventory mania, the corporate was dragged into Congress and questioned about commerce controls and its willingness to offer subtle buying and selling instruments to unsophisticated buyers. Given this unexciting asset buying and selling market, the corporate is probably going reluctant to draw renewed curiosity from regulators and lawmakers.
However that is only one piece of the puzzle. Robinhood solely must do a easy risk-reward calculation. Maybe the corporate is not producing sufficient income to make efforts to guard its tokens from shoppers who commerce them.
Robinhood didn’t instantly reply to a request for remark.