Brokerage app Robinhood, popular with younger retail investors, will allow customers to deposit and withdraw cryptocurrencies, Reuters reported. That will include the meme-based dogecoin.
Currently, Robinhood doesn’t invest in cryptocurrency or use any customer cryptocurrency for its own benefit, according to Reuters.
PYMNTS reported that Robinhood, which takes its name from the fictional protagonist Robin Hood who took from the rich and gave to the poor, has somewhat turned the myth on its head as who is rich and poor can change by the day in stock trading.
The landscape has changed in part because of the technological landscape, which has brought buyers and sellers together online and in real time. This has created an effect in which the accounts are leveraged and social media is used as a megaphone, with the ability to get in or out of holdings as quickly as possible.
Education is also an issue, though, with the opening of conduits to get either rich or poor also coming with a need to instill in people a kind of “think before you trade” hesitation.
The GameStop incident that occurred in late January, with Robinhood and other brokerages shutting down trading on some stocks like GameStop and AMC to help get the market back under control after retail investors managed to skyrocket the value of those stocks, is still seeing talk and investigations.
Now, as Congress investigates the matter, Robinhood along with Melvin Capital and Citadel Securities will appear before the government to discuss what happened.
Melvin was one of the hedge funds that took a loss when the stocks were unexpectedly escalated. Melvin lost 53 percent of its $12.5 billion in assets in the events.
Citadel Securities is under scrutiny because of its business relationships with Robinhood. Citadel handles 20 percent of all U.S. equities volume and 39 percent of retail volume, according to its website.
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