Robinhood CEO's new announcement doesn't provide any details on the launch of the crypto wallet. The California-based investment company says it plans to launch a crypto wallet. Additionally, CEO Vlad Tenev announced Saturday that cryptocurrencies are becoming a central part of the app's future goals. Similarly, the company may be working on a crypto wallet. Tenev made the announcement while answering questions from the audience about the company's upcoming IPO.
Why a crypto wallet for Robinhood users?
Tenev says the company knows users want crypto wallets. He then says plans are underway. This is to introduce additional features. Earlier in March, Tenev promised that the crypto wallet is available as soon as possible. However, the new announcement doesn't provide any additional details. As well as being even more coy than the previous one.
Currently, users of the platform cannot transfer assets at will by driving some to Coinbase. Tenev says that this issue is also being addressed. He adds that there are a lot of features to add. Also, the delay is due to the fact that they want everything to be perfect from the start.
What to expect from the company's IPO
Since its founding in 2013, Robinhood has been a central figure in the rise of retail trading. It has been dabbling in cryptocurrencies for some time, with about 17% of its total revenue in the first quarter coming from cryptocurrency transactions. This is a sharp change from the 5% recorded in the last quarter of 2020 alone. The company has warned that the decline in interest in the coin, as well as general developments in the cryptocurrency ecosystem, could be a limitation for the company.
The company is making a third of its shares available to users in the upcoming IPO. This will be done through its app. The move is in line with its goal of decentralizing finance and bridging the gap between individual investors and institutions. However, the company noted that interest from retail traders could affect the stock price.
According to its filings with regulators, the company plans to raise up to $2.3 billion for its IPO. The company's stock will start trading on Thursday under the ticker symbol HOOD. It is offering 55 million shares at a price of $38 to $42 per share, bringing its market valuation to $35 billion.
Despite the warnings, the company's IPO remains one of the most anticipated with up to 17.7 million monthly active users and over 6 million users in the first quarter of 2021.
