American financial services company Robinhood is gearing up to broaden its cryptocurrency offerings to the European Union (EU) and the United Kingdom, signalling an ambitious move garnering significant social media attention. Santiment, a crypto analytics platform, views this social buzz as a promising sign that could spark another bullish rally in the cryptocurrency space.
Growing Social Mentions Highlight Robinhood’s Move
Initially recognized as a stock brokerage app, Robinhood ventured into cryptocurrency in 2018, initially with limited support for Bitcoin (BTC) and Ethereum (ETH) in select U.S. states. However, it wasn’t until 2021, in the wake of the cryptocurrency boom triggered by the COVID-19 pandemic, that the platform significantly expanded its crypto offerings.
Despite its efforts, Robinhood has faced stiff competition from other fintech applications like Revolut, which have established themselves as crucial players in the cryptocurrency landscape, particularly within the EU and UK.
Robinhood’s third-quarter earnings report recently confirmed the EU and UK expansion. The company intends to rely on its existing team to spearhead the launch of its brokerage services in the UK, with plans to bolster its workforce through new hires. This decision is made despite a 55% decline in the company’s crypto revenue, which currently stands at $23 million. Robinhood’s strategic focus remains on long-term prospects in the crypto market.
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The move to extend its reach to the EU and UK has the potential to invigorate the broader cryptocurrency market, with Santiment predicting that it could act as a catalyst for another bullish surge. This projection is based on the premise that the expansion will introduce new investors and users to the Robinhood platform.
Santiment has presented data illustrating how Robinhood is already gaining traction in terms of social mentions. The platform shared a chart demonstrating that Robinhood has reached its highest social dominance since early October, with a social volume score 48, equivalent to 0.08% of the total. While it may not be the hottest topic, Robinhood is undeniably gaining substantial attention compared to its previous levels.
Robinhood’s Approach to Crypto and Regulatory Compliance
While Robinhood is forward-thinking in its approach to cryptocurrency, it maintains one of its competitors’ most rigorous listing procedures. While it maintains a diverse portfolio ranging from Bitcoin (BTC) to Shiba Inu (SHIB), with most of these assets scheduled for integration into the EU and UK brokerage, it also promptly addresses regulatory uncertainties surrounding the assets it backs.
This proactive stance was evident when Robinhood delisted Cardano (ADA), Polygon (MATIC), and Solana (SOL) in early June. This decision stemmed from events dating back to February when the company received a subpoena from the U.S. Securities and Exchange Commission (SEC). The lawsuit filed against Binance was the ultimate trigger for the delisting.
Despite these regulatory considerations, Robinhood has been actively enhancing its cryptocurrency offerings since its initial integration, including launching a wallet that supports all assets, including popular tokens like Shiba Inu and Dogecoin.
Shiba Inu, one of the largest holders of SHIB tokens, has gained substantial advantages through its association with Robinhood, and the forthcoming expansion into the EU and UK markets is expected to further augment this favorable trend.