Robin Hood (NASDAQ: HOOD) reported 22.4 million funded accounts in the third quarter of 2021, and many of those users are interested in cryptocurrency. Robinhood’s third-quarter cryptocurrency revenue climbed 860% year over year. More than a million people are on the waiting list for the company’s crypto wallets.
While Robinhood is rapidly expanding its cryptocurrency capabilities, it is not moving fast enough for some investors. The trading platform does not support one of the hottest digital coins on the market – Shiba inu (CRYPTO: SHIB). Here’s why you might not be able to buy Shiba Inu on Robinhood anytime soon.
It’s not like Robinhood users don’t want to buy and sell Shiba Inu. Tristan Luke, a big fan of the digital token, started a petition on Change.org to try to persuade Robinhood to enroll Shiba Inu.
Luc pointed out that Dogecoin (CRYPTO: DOGE) has been a success for Robinhood so far. He argued that “Shiba Inu is a similar coin with real potential” and that it “is gaining ground day by day”.
Several months have passed since the petition was first submitted and it now has nearly 534,000 signatures. The petition needs a million signatories to rank among the best on Change.org. This threshold could very well be within reach in the not-so-distant future.
Many Shiba Inu fans refer to themselves online as SHIBArmy. This army has already won several key battles. Binance, which offers its own Binance Coin cryptocurrency, listed Shiba Inu in May. And just a few days ago, Gemini announced its support for its exchange for the rapidly growing digital token.
However, the SHIBArmy may have to wait a while before they achieve victory by adding Shiba Inu to the Robinhood platform. The company doesn’t seem in a rush to add the popular token.
Robinhood co-founder and CEO Vlad Tenev admitted on the company’s third quarter conference call in October that “customers want new parts.” However, he added: “The regulatory environment in terms of new coins and loan and crypto products is uncertain and evolving. And we need to clarify – carefully assess whether we can add new coins in a safe way for customers and in compliance with regulatory requirements. “
Christine Brown, Robinhood’s COO, recently echoed Tenev’s tentative position. At an event last week hosted by cryptocurrency publication Decrypt, Brown said, “Our strategy is a bit different from that of a lot of other players who are struggling to list as many assets as possible in this. moment. We believe that the short, long-term gain we might get is not worth the long-term trade-off for our users. “
Neither Brown nor Tenev singled out Shiba Inu in their comments. However, it doesn’t look like Robinhood is planning to add the popular piece anytime soon. The company is probably reluctant to move forward without careful deliberation, due to the high volatility that could potentially cause liquidation issues.
Does it matter?
Shiba Inu has achieved stunning success so far without being listed on Robinhood. It is now the 11th largest cryptocurrency in the world by market capitalization, according to CoinMarketCap.
However, availability on exchanges is an important factor in the value of cryptocurrencies. No traditional purse has yet listed the Shiba Inu. The digital coin would almost certainly skyrocket if Robinhood chose to support it.
Robinhood users can use other platforms to buy and sell Shiba Inu coins, but it’s definitely best to have all of their holdings in one place. The longer Shiba Inu remains one of the most actively traded cryptocurrencies, the more pressure Robinhood will feel to add the token.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.