In its latest funding round, Robinhood has raised a huge amount of $323 million which makes the millennial-focused stock and crypto trading app worth around $7.6 billion. But even though the mainstream appeal, the ‘no commission’ broker is still not worth as much as the Bitcoin-focused exchange Coinbase, which boasts a valuation of more than $8 billion.
After reading the newly published press release by Robinhood makes clear that they have been hard work since the end of the last funding round and have added multiple new features to the popular platform.
“We’re focused on building products and services that expand access to our financial system. Since May of last year, we’ve launched our own clearing system, Clearing by Robinhood; rolled out a new Robinhood Gold experience including Nasdaq Level 2 Market Data; and introduced multi-leg options strategies. We also acquired Robinhood Snacks to bring people digestible financial news; grew our management team, including leaders for operations and finance; and expanded Robinhood Crypto to more than 30 states.”
There was no mention of the savings account that burnt out massively before the launch could even happen.
So when you look at features that were actually given the green light, Robinhood Crypto stands out as anything even slightly revolutionary as the rest is just old news at this point.
Before putting it into perspective, some people might think that it is strange that a Bitcoin exchange is worth more than a legacy finance darling.
As reported by CCN:
“Robinhood’s success is a triumph of marketing. Cost of trading has been coming down for a long time, and they have simply taken a haircut to try and scoop up all the unwanted small accounts in the millennial niche.”
They may not have taken that plunge into Europe yet but that is probably because everyone can trade spread-betting CFDs (contracts for difference). These brokers never charge a commission though.
But Coinbase as spearheaded an industry and with crypto gaining further speculative interest, thanks to Bitcoin, the value makes sense.