Investment management and cryptocurrency/stock trading app Robinhood have announced that they will be listing both Bitcoin Cash and Litecoin in order to expand their ever growing cryptocurrency portfolio.
Robinhood works by purchasing cryptocurrency from exchanges and then selling it on to their own customers. This in turn makes the purchase cheaper for the customer but still allows Robinhood to profit from the exchange, though the level of that profit is obviously dependant on the current market trends. This is why it is important that Robinhood begins to list cryptocurrencies like Bitcoin Cash and Litecoin as, ultimately, they are only improving their chances of generating a profit by doing this.
According to Fortune:
“Robinhood’s decision to add Litecoin and Bitcoin Cash is not surprising as the currencies come with little regulatory risk, based on recent guidance from the SEC. This is not the case with other more centralized digital tokens, which the agency has warned are akin to securities that must be registered. Robinhood says it’s service offers users the ability to track the price of other cryptocurrencies, including XRP and Monero, and that the company may offer some of these for sale in the future.”
See the full article for yourself, here.
Cryptocurrency is a bit of a side project for Robinhood at the moment, with their main focus based on a more traditional stock brokerage. With this in mind though, they clearly do wish to expand their cryptocurrency portfolio and could one day open up their own cryptocurrency exchange, away from the current ‘coin buying platform’ through which Robinhood operates. As a result of this, it is unlikely that Bitcoin Cash or Litecoin will skyrocket from this announcement, however in a few months time, when Robinhood grows within cryptocurrency and becomes a more serious point for exchange, we could very well see the already listed coins benefit greatly.