Robinhood Launches 'Digestible' Financial Newsletter After Its First Ever Acquisition

Francisco Memoria

No-fee stock and cryptocurrency trading app Robinhood has recently announced the acquisition of a media company called MarketSnacks. The move is accompanied by the launch of a ‘digestible’ financial newsletter taken from the firm.

The newsletter has been rebranded to “Robinhood Snacks,” and will focus on giving the company’s millennial audience financial news in a humorous way, making it easier to digest. This was notably the $5 billion firm’s first-ever acquisition, and analysts believe it’ll help it remain a one-stop shop for young investors.

The company’s VP of product, Josh Elman, wrote in a blog post:

We improved ​market news​ coverage on our platform, added discovery tools on mobile, and revamped our Help Center to better answer your questions. Robinhood Snacks is a major step towards building out these resources and helping you get more informed on market news.

MarketSnacks was a company launched by Nick Martell and Jack Kramer, who will now join Robinhood as the managing editors of news, to keep on producing the newsletter, which usually features a photo and humorous analysis of three to four headlines.

Robinhood hasn’t revealed the terms of the deal, nor the newsletters’ growth metrics. Per Fortune, MarketSnacks has “tens of thousands of subscribers” two years ago. The company was founded in 2012, and saw its founders create the newsletter after the markets closed, as they still had full-time jobs on Wall Street.

According to the publication Martell noted that although the newsletter is going to be integrated into Robinhood’s offering, it will keep on being independent from the rest of the company. He stated:

A core element here is that ‘Robinhood Snacks’ will have editorial independence from the rest of Robinhood. We are committed to a set of editorial principles, just like any committed news organization.

The rebranded newsletter, Robinhood Snacks, won’t need users to subscribe to any other Robinhood products. Along with it, the firm has scooped up the MarketSnacks podcast, in which the analysts go into a few top stories each day.

Robinhood, as CryptoGlobe covered, doesn’t just let users trade stocks without paying fees, but has added cryptocurrencies to its platform in the last few months. It has, however, been criticized for amount of money it has been making off of customers’ data. The company is reportedly looking to go public through an initial public offering (IPO

38% of Crypto Exchanges Interact With High-Risk Entities in 25% or More of Their Transactions

Leading cryptoasset data provider CryptoCompare has published an updated version of its cryptocurrency Exchange Benchmark. The report details that 38% of crypto exchanges interact with high-risk entities in 25% or more of their transactions.

According to CryptoCompare’s Exchange Benchmark, interactions with high-risk entities are considered when the cryptoasset data provider is raking exchanges. These interactions are measured according to CipherTrace’s Interaction Risk Score, which profiles transactional risk by “deanonymizing risky entities and illicit activities to identify criminal sources of funds and money laundering exposure.”

CryptoCompare then scores exchanges according to the percentage of transactions conducted with entities deemed high-risk. These include criminals, darknet markets and vendors, gambling projects, malware operators, cryptocurrency mixers, ransomware operators, and OFAC sanctions addresses.

The benchmark details that addresses with up to 25% of transactions conducted with these entities receive some points, but those above said mark receive none. Notably, 38% of cryptoasset exchanges were above it.

Data shared in the report detailed that Top-Tier cryptoasset exchanges, those graded AA to B in the report, interact less with these entities, while Lower-Tier exchanges, those rated C-E, interacted more. While both AA-related exchanges, Coinbase and Gemini, had no interactions with high-risk entities, some of the exchanges with A, BB, and B ratings did.

As CryptoGlobe reported, the Exchange Benchmark also revealed Top-Tier exchanges are gaining market share against Lower-Tier exchanges. It details that top-tier exchanges accounted for 32% of the global volumes in Q4 2019, while in the first quarter of this year they accounted for 36%.

In the second quarter of 2020, the Top-Tier exchanges already accounted for 40% of the global trading volume. In June these exchanges got to a 46% market share. Lower-Tier Exchanges, have seen their share of the space’s total trading volume drop from 68% to 60% in the last three quarters.

Featured image via Pixabay.