Robinhood (HOOD) Adds New Cryptocurrencies to Platform

Online brokerage now offers Compound, Polygon, Solana, and Shiba Inu

Online brokerage Robinhood Markets, Inc. (HOOD) added four new cryptocurrencies to its trading platform on April 12, 2022, leading to excitement among cryptocurrency traders and holders. Robinhood Crypto now features Compound (COMP), Polygon (MATIC), Solana (SOL), and Shiba Ibu (SHIB), all top 100 cryptocurrencies on the CoinMarketCap ratings.

Key Takeaways

  • Online brokerage Robinhood (HOOD) added four new cryptocurrencies to its trading platform: Compound (COMP), Polygon (MATIC), Solana (SOL), and Shiba Inu (SHIB).
  • The company offered the four new currencies alongside access to a new cryptocurrency wallet feature to more than 2 million customers on a waitlist.
  • The announcement led to a sharp price increase for Shiba Inu and more modest gains for Compound, Polygon, and Solana.

Why Robinhood Added These Cryptocurrencies

Robinhood is a commission-free trading platform that offers stocks, exchange-traded funds (ETFs), options, and cryptocurrency investing and trading products. Robinhood already supported popular currencies including Bitcoin, Ethereum, Litecoin, and Dogecoin. With the four newly added digital currencies, Robinhood now offers 11 unique cryptocurrencies on its platform.

According to a blog post from Robinhood, cryptocurrency customers have consistently requested a more extensive set of coins and tokens as well as the ability to send and receive cryptocurrencies outside of Robinhood. In the announcement, the company offered the four new currencies alongside access to a new cryptocurrency wallet feature to more than 2 million customers on a waitlist.

What Happened When Robinhood Added SHIB and Other Currencies

Shiba Inu holders and enthusiasts took to Twitter and other social media platforms to share their excitement at the addition of Shiba Inu. Robinhood's announcement also led to a sharp initial price increase for the low-priced currency, which was up about 20% and trading at $0.00002646 as of this writing. Shiba Inu is the 15th largest currency by market cap, with a total value of about $15 billion. Compound, Polygon, and Solana also saw increases, but these were modest compared with Shiba Inu's gains.

Cryptocurrencies Available at Robinhood

CoinMarketCap lists nearly 10,000 digital currencies, and CoinGecko features listings for more than 13,000. While many are near worthless, the currencies available at Robinhood tend to be among the better known and more valuable currencies. Here's the complete list of cryptocurrency assets now available to Robinhood Crypto users:

  1. Bitcoin
  2. Ethereum
  3. Bitcoin Cash
  4. Compound
  5. Litecoin
  6. Solana
  7. Bitcoin SV
  8. Ethereum Classic
  9. Polygon
  10. Dogecoin
  11. Shiba Inu

Cryptocurrencies may receive a lot of attention, but they're still a relatively small area for Robinhood compared to stock, ETF, and options products.

Finding Currencies Before They're Added to Robinhood

While it may be valuable to know which currencies will be listed on major exchanges like Robinhood ahead of the news release, it's unlikely this information will be shared with individuals, as it would be akin to insider trading. Instead, you can expect significant public announcements like Robinhood's recent post.

Competitor Coinbase recently announced a new plan to share potential currencies that are being evaluated by the Coinbase team for possible addition. The roadmap for April 1 to June 30, according to the post, includes the potential to add 20 new Ethereum-compatible ERC-20 tokens and five Solana SPL-compatible tokens.

However, Coinbase also clearly states that "any asset not referenced in the list does not preclude any such asset from potential listing," so there is no guarantee that you won't see future surprises.

Always Consider the Risks When Investing in Digital Currencies

Cryptocurrency assets may not be appropriate for all investors, so it's essential to do good research and understand the risks before investing your own money. If you're in doubt, it may be wise to consult with a trusted financial professional who can guide you on the most appropriate money and investment decisions for your unique needs.

Article Sources
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  2. CoinMarketCap. "Today's Cryptocurrency Prices by Market Cap."

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  4. Twitter. "Shib Hodler."

  5. CoinMarketCap. "Shiba Inu."

  6. Coinbase. "Increasing Transparency for New Asset Listings on Coinbase."

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