Stock Trading App Robinhood Launches Zero-Fee Cryptocurrency Trading In 5 U.S. States

  • Popularstock trading app Robinhood launched bitcoin and ethereum trading, without any fees.
  • The company also announced a social media-like platform dubbed Robinhood Feed.
  • This puts Robinhood in direct competition with industry giant Coinbase and Square's Cash app.

Popular mobile stock trading app Robinhood has formally launched its new Robinhood Crypto service, that now allows customers in five U.S. states to buy bitcoin and ethereum without paying any fees.

According to an announcement, residents of California, New Hampshire, Massachusetts, Missouri and Montana can now trade the top two cryptocurrencies using the app. Those who aren’t yet able to trade will be able to track those and 14 other cryptocurrencies, including Ripple, Litecoin, Bitcoin Cash, Ethereum Classic, Monero, NEO, and Dogecoin.

Robinhood’s has promoted the service with zero fee trading and is targeting millennials with their ‘Don’t Sleep’ advertisement. Robinhood announced its plans  and hopes to bring cryptocurrencies to a whole new audience. Robinhood’s users are investors who trade traditional products such as exchange-traded funds (ETFs) and stocks.

Merely four days after announcing Robinhood Crypto, the platform saw over 1 million people register to use it. This helped Robinhood reach 4 million users, up from the 3 million it had in November. Its users have already transacted over $100 billion, and saved $1 billion in commission fees.

By offering zero commission trading, the app makes stocks, ETFs, and now cryptocurrencies more accessible. The announcement reads:

“Over the past few weeks, we’ve been overwhelmed by the enthusiasm towards Robinhood Crypto and are excited to contribute to the cryptocurrency community in a meaningful way. (…) With the release of Robinhood Crypto, we’re continuing our mission of making the financial system work for everyone, not just the wealthy.”

Robinhood Crypto

Along with Robinhood Crypto, the company also announced the launch of a new social media-like platform dubbed Robinhood Feed. This new platform allows investors to discuss different cryptocurrencies, cryptocurrency-related news, and what’s going on in the markets in real-time. Robinhood Feed, according to the company’s announcement, is only available to a limited number of users for now.

The move makes Robinhood one of the major financial apps allowing users to easily buy and sell cryptocurrencies, as it is now competing with industry giant Coinbase, which reached over $1 billion in revenue last year, and with Square’s Cash app, which also recently launched commission-free bitcoin trading to US customers.

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Those Banned From Facebook May Not Be Able to Use Its Cryptocurrency Libra

Facebook’s two days of congressional hearings on the social media giant’s cryptocurrency ambitions seemingly revealed that those who have been banned from Facebook may not have access to Libra.

During the congressional hearing Facebook had to answer some tough questions, and one of them came from Representative Sean Duffy, which asked the company’s cryptocurrency head, David Marcus, who’ll have access to Libra.

The Congressman initially asked Marcus who could use the cryptocurrency, to which Calibra’s CEO answered: “anyone that can open a Calibra account, that can go through KYC [know-your-customer checks] in countries where we can operate.”

Duffy then referenced two individuals banned from Facebook for violating its community guidelines, Louis Farrakhan and Milo Yiannopoulo, and asked whether they’ll be able to use the social media giant’s cryptocurrency.

Marcus ended up replying he doesn’t “know yet,” after seeing Duffy hold a $20 bill and ask hin who can use it. His point was that cash doesn’t discriminate, and that anyone who can hold it can use it.

While throughout the hearing Marcus tried to point out the company will follow appropriate regulations and comply with lawmakers, Duffy responded that a proper answer would be “as long as you abide by the law, you can use Libra.” The fact he didn’t get this answer, Duffy said, gave him “great pause.”

Speaking to The Daily Beast Elka Looks, a Facebook spokeswoman, clarified Marcus addressed the Congressman’s concerns later on in the hearing. She stated:

For Libra, anyone who is engaging in lawful activity will be able to transact on the network. Facebook will have no say. For Calibra, there is no policy in place yet, but we will share it when it is closer to being finalized.

The news outlet adds that Calibra, Facebook’s wallet to send, receive, and hold Libra, doesn’t yet have final terms of service or a privacy policy. All of this means that those who’ve been banned on Facebook may not have access to its cryptocurrency.

As CryptoGlobe covered, Congressman Warren Davidson implied during the hearings Facebook’s crypto is a ‘shitcoin’ as it doesn’t have some of the properties bitcoin has. The Congressman made it clear bitcoin has no central authority that can censor transactions or dilute its value, while Libra has the Libbra Association.