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Why Robinhood Is a Dark Horse in the Crypto Industry

The well-known fintech is quietly well positioned to be a prominent player in crypto.

Photo by Austin Distel on Unsplash
Robinhood Crypto’s retro theme. Image via TechCrunch

Three years later, widespread adoption has yet to come

Robinhood committed a cardinal sin among crypto users by selling them “paper Bitcoin” and not allowing them to own and move crypto to other destinations.

No metrics thus far

Binance, one of the leading crypto exchanges, prides itself on its reach. Image via Binance Blog

Why would Robinhood double-down on crypto?

  1. There’s a lot of money to be made and users to grab
  2. In the U.S. (Robinhood’s only current country of operation), the second-tier exchange market is highly fragmented
  3. They’ve already invested a lot in high-end crypto infrastructure (a bit of a sunk cost fallacy, but bear with me)

There’s a lot of money to be made

Image via TradingView

The U.S. second-tier exchange landscape is highly fragmented

Robinhood already established foundational crypto infrastructure

How can Robinhood succeed as a crypto exchange?

  • Coinbase already serves that niche in crypto
  • Traders have higher engagement with exchanges and transact more than investors, leading to higher customer LTV

Reimagining the Robinhood Crypto product

Leverage Robinhood’s competitive advantages

Final thoughts



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