With FTX's Sam Bankman-Fried Owning 8% of the Company Robinhood Takes a Radical Step Forward in Crypto

By Cje95 | Chronic Illness and Crypto | 17 May 2022


Earlier this year Robinhood's executives commented that the future expansion of the company internationally would be crypto-oriented. Robinhood would be expanding internationally with crypto assets first and then work on following it up with traditional assets like the stock market later on. Initially, I was kind of skeptical of this development but then they added wallets and additional cryptos like Solana, Compound, and others.  

 

They kicked off the idea of going international in the middle of April when they acquired United Kingdom-based and licensed crypto firm Ziglu Limited. By acquiring a firm that was already licensed in the UK Robinhood was able to speed up the process of acquiring a license in a country that is known for its extremely challenging crypto regulations. Ziglu itself is also much more familiar with the European regulatory landscape which made buying them something that would allow Robinhood to expand in Europe much faster than they could have done trying to launch their product themselves from scratch. 

 

Not too long after this Robinhood slimmed down its workforce letting go 9% of its employees and delivering disappointing numbers for the first quarter. Thanks to these numbers the stock was pummeled and this might have ended up being a blessing in disguise for the company. Last week it came out that FTX co-founder and CEO Sam Bankman-Fried had acquired 8% of the company. This was huge for several reasons but one that people have been quick to point out is that FTX does not operate in the US and would be a great compliment to Robinhood. FTX has also been working on being able to offer stocks like a traditional investment broker something that would be huge if it can pull it off. 

 

Today a week after this investment by SBF came to light Robinhood LEPT off the crypto ledge in a fashion I never saw coming. Robinhood is building a brand new non-custodial web3 wallet. This means that the decentralized web is coming to Robinhood. Owning NFT's, participating in DeFi, and being able to access new crypto assets is coming to Robinhood user fingertips! 

 

They have announced it will be in a standalone app but it will be part of the overall Robinhood ecosystem they are building. This wallet will be multichain a key thing for the masses to accept is as different people use different blockchains. By far though the biggest part of this announcement is what Robinhood is going to cover for the users. Robinhood is planning to bring feeless transactions to this wallet. Yes, you heard that right Robinhood is going to allow users to trade and swap crypto with NO NETWORK FEES! 

 

Yes, the Ethereum switch to PoS is supposed to dramatically lower the amount spent on transactions but Robinhood is working with liquidity partners to create a wallet that will allow these users to be able to trade and swap without fees! This is the type of groundbreaking idea that got Robinhood its start when they offered stock trades without fees!

 

Who knows what type of domino effect this could have if Robinhood can pull it off. Centralized exchanges already tend to charge high fees but now Robinhood is going to try and leverage its size and base to pay for the fees for the users! Watch out Coinbase, FTX, Binance, and others because if this works it will change the game completely!

 

You can now sign up for the waitlist for this wallet. If you sign up through my link here we both get to move up in the line and I cannot wait to try this out! If you do not have a Robinhood account but are looking to get one sign up with my link here and we both get a free stock! After many many complaints about Robinhood and crypto, it seems the company is taking the platform in a whole new direction and I cannot wait to see what else is in store!

 

Please know I am not a financial advisor I am just someone who picked up on a trend and wanted to express it! Makes sure you always do your own research and never invest money you cannot afford to lose! If you enjoyed this article and would like to further support me below are a couple of referral links that if you used when signing up I would appreciate it! Also, follow me on Twitter @Cje95_

 

Robinhood

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Coinbase

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Cje95
Cje95

Graduated from Texas A&M in May of 2020 had dabbled in crypto since 2017 but dove in at the end of 2019. December of 2020 packed up and moved to D.C.! Huge sports fan, space nerd, and international newsreader! Follow me on Twitter @Cje95_


Chronic Illness and Crypto
Chronic Illness and Crypto

Cryptocurrency and Blockchain are going to be a huge part of the future and no matter who tries it isn't going to be stopped! Here I try to give my best insight and thoughts into the latest crypto news, features, developments. Further, I look to discover any link to news from the United States ranging from social-political issues to stock market and economic data.

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