Robinhood CEO says he is working to facilitate crypto exit
- Robinhood CEO Vlad Tenev said the app tries to make cryptocurrency deposits and withdrawals easier.
- He was responding to Mark Cuban, who said the biggest problem with dogecoin was that users couldn’t spend their Robinhood holdings.
- Cryptocurrencies have exploded, as retail investment through apps like Robinhood has increased during the pandemic.
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Robinhood Tries To Make Cryptocurrency Deposits And Withdrawals Easier, Company CEO Vlad Tenev mentionned on Twitter Tuesday, in response to comments from billionaire and crypto supporter Mark Cuban.
Cuban ‘Shark Tank’ star investor had tweeted the biggest factor preventing cryptocurrency dogecoin from growing was that people were not able to use their currency holdings even on the online trading app to make purchases.
Robinhood users can buy and sell cryptocurrencies, but the app does not currently allow them to withdraw cryptocurrencies or access their crypto wallets – which they must do to use their digital coins for it. payment. Crypto assets that people store elsewhere cannot be transferred to Robinhood accounts either.
Any possession of dogecoin or other cryptocurrencies on Robinhood is therefore effectively locked and cannot be used to purchase goods or services. This means that investors and users of cryptocurrencies must have a separate account elsewhere if they want to use their holdings in everyday life.
Tenev’s tweet suggests that this may change soon, as Robinhood is working on its deposit and withdrawal capabilities and tackles these issues, which have been raised continuously by users of the app.
Cuban, who owns the Dallas Mavericks basketball team, has been a strong supporter of cryptocurrencies, especially dogecoin, and believes people should be able to use it as a form of payment. Last week, he helped a TikTok star use dogecoin to buy tickets to a Mavericks game. The Mavericks had announced in March that they would accept dogecoin as a form of payment for merchandise and banknotes.
Monday, Cuban tweeted they were on track to make 6,000 dogecoin purchases this month.
Dogecoin, which started out as a joke in 2013, is often referred to as a meme currency. It has climbed in value this year, having gained nearly 12,000% in the past 12 months. It peaked above $ 0.45 earlier this month. On Tuesday, it was trading around $ 0.27, up 1.2% on the day.
Along with other cryptocurrencies including bitcoin and ether, dogecoin has grown in popularity over the past year as retail investment has increased during the pandemic. Dogecoin was traded for less than a cent a year ago and the value of bitcoin has increased by over 600% during the same period.
Crypto products like extra coins, non-fungible tokens, and even digital sports apps have been created or have recently gained traction.
Platforms like Robinhood, which is preparing to go public via an initial public offering, allow retail investors to trade crypto assets, as well as stocks, from their phones. Robinhood itself has also seen significant user growth over the past year.