Robinhood wants to expand its cryptoservices. The platform will integrate deposits and withdrawals in cryptos, as the recent scandal on GameStop shares once again reveals the dangers of CEX.
What’s up with Robinhood?
On February 17, 2021, the Robinhood trading platform announces its intention to accept deposits and withdrawals in cryptomoney.
Robinhood clients could already buy and sell cryptos via the platform, but could not access it directly to transfer cryptos to other wallets.
The platform indicated in a series of tweets that work on integrating the transfer of cryptos had already begun. However, it did not provide a date for the launch of a new service.
The deposits will be kept in the Robinhood wallets. The company has stated that it does not invest in cryptomoney, and therefore will not use client funds for its own benefit.
The key to the success of DEX
Robinhood has 7 cryptos listed for trading on its platform: Bitcoin (BTC), Dogecoin (DOGE), Ether (ETH), Litecoin (LTC), Ethereum Classic (ETC), Bitcoin Cash (BCH), and Bitcoin Satoshi Vision (BSV).
On January 29, 2021, Robinhood suspended instant fiat deposits in response to strong speculation fuelled by social networks.
He described his decision as a reaction to ‘extraordinary market conditions’. Robinhood had reinstated instant deposits for purchases of crypto-currency on 4 February 2021.
Robinhood’s decision to expand its cryptos services comes at a time of growing mistrust of CEX. This mistrust concerns in particular the control of the private keys of wallets.
With the rise of DeFi in 2021, the DEX could catch up with the CEX in terms of cumulative transaction volume.
The DEXs are continually striving to improve their interface to make it more intuitive in order to attract new users.
The cryptosphere needs to much more prominently highlight the advantages of DEX over CEX in order to improve the decentralisation of the whole ecosystem. Robinhood may have more than one string to his bow, but he will find it hard to make people forget his controversial decisions about GME actions. Robinhood has not specified whether its deposit and withdrawal services will cover all the cryptos already listed on its platform. CEXs offering cryptos services: one day we may not see this kind of inconsistency anymore.
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