Robinhood Releases Crypto Wallet To 2 Million Users, Plans Integration With Bitcoin Lightning Network (coindesk.com) 10
Robinhood Markets (HOOD) said Thursday it has activated its crypto wallet for 2 million "eligible" customers, making digital asset transfers broadly possible in the long-firewalled investments app. CoinDesk reports: Chief Product Officer Aparna Chennapragada made the announcement on stage at the Bitcoin 2022 conference in Miami. Only a handful of wallet beta testers could move bitcoin (BTC), ether (ETH), dogecoin (DOGE) and a handful of other traded coins in and out of Robinhood's walled garden before. Now, all waitlisted customers outside of regulatory no-go zones Nevada, New York and Hawaii can do so. Additionally, she said Robinhood will add support for bitcoin transactions on the Lightning Network, the speedy, low-cost settlement layer for Bitcoin. "For the larger community this is a fantastic way" to access bitcoin cheaply and in a green way, she said, adding that BTC is the top recurring buy on the app.
Still, Robinhood's multi-asset wallet falls short of true functionality. It cannot plug into Ethereum-based services as MetaMask does. It cannot accept ERC-20 tokens, non-fungible tokens (NFT) or any asset outside of Robinhood's trading list. Tokens generated by airdrops and forks won't work either. "Any NFTs sent to a Robinhood Ethereum address may be lost and unrecoverable," the FAQ page said. Staking also appears to be off-limits for now. Tenev has previously acknowledged customers' desire for the yield-earning feature and said during last quarter's earnings call that Robinhood was investing in the necessary tech. A staking service would have to be "compliant," he said.
Users won't be charged for moving their Robinhood-based crypto into wallets that have such abilities. The company said it will apply estimated gas fees but not withdrawal fees to requested outbound transfers. There's a $5,000 daily cap on outbound transfers and newly acquired crypto stays put until the transaction settles, the web page said. Further, users must undergo an identity check and enable two-factor authentication to access the wallet.
Still, Robinhood's multi-asset wallet falls short of true functionality. It cannot plug into Ethereum-based services as MetaMask does. It cannot accept ERC-20 tokens, non-fungible tokens (NFT) or any asset outside of Robinhood's trading list. Tokens generated by airdrops and forks won't work either. "Any NFTs sent to a Robinhood Ethereum address may be lost and unrecoverable," the FAQ page said. Staking also appears to be off-limits for now. Tenev has previously acknowledged customers' desire for the yield-earning feature and said during last quarter's earnings call that Robinhood was investing in the necessary tech. A staking service would have to be "compliant," he said.
Users won't be charged for moving their Robinhood-based crypto into wallets that have such abilities. The company said it will apply estimated gas fees but not withdrawal fees to requested outbound transfers. There's a $5,000 daily cap on outbound transfers and newly acquired crypto stays put until the transaction settles, the web page said. Further, users must undergo an identity check and enable two-factor authentication to access the wallet.
Can we not say this enough times? Fuck Robinhood. (Score:5, Interesting)
Robinhood has demonstrated itself to be anti-retail investor time and again. Why do people still use their service?
A $5000-per-day withdrawal limit? [rolls eyes]
DO NOT use robinhood.com. They have demonstrated themselves to be thieves many times in the past.
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DO NOT use robinhood.com. They have demonstrated themselves to be thieves many times in the past.
Um... They're named "Robinhood", what else did you expect? :-)
Oh goody (Score:3)
Seriously folks this is going to eventually work its way into the broader economy and when it does it's going to cause a massive crash. If you think 2008 was bad what do you think is going to happen when we get a bubble like that but with pretend assets? Remember the layoffs? If you yourself weren't laid off remember the unpaid overtime to make up for your co-workers who wore laid off?
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-please, no one sneeze!
Goldman Sachs is eyeing crypto (Score:2)
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Now even more people who don't understand the risks involved can gamble on high stakes Ponzi schemes.
And people can now "invest" the IRA funds in cryptocurrencies -- what a horrible idea.
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Bring on the LN trolls (Score:2)
Can't wait til someone decides to exploit vulnerabilities in LN to tie up transactions. Of all the blockchain technology to support, why that shit?
A good rule of thumb (Score:2)
Any company in the business of MONEY is after your MONEY. This is especially true when they cloak themselves in titled propaganda, like "ROBINHOOD", or "PATRIOT ACT".
"Customers always get the really big smile as the businessman carefully positions himself directly behind the customer and unzips his pants and proceeds to service the account." - George Carlin