Popular trading platform, Robinhood, has launched the trial version of its crypto wallet feature that allows its users to perform crypto transactions outside the platform.
Feature Only Available For Select Users
However, this feature (WenWallets) is only available to 1,000 selected users. Part of the press release issued by Robinhood states that the firm intends to enable this feature for additional 10,000 users before allowing the remaining one million users to access this feature.
Another part of the announcement read, “the selected users will furnish us with necessary feedback based on their experience using this feature. Thus, we can use their feedback to improve the final version of this feature.” Robinhood has launched a similar feature in the past before removing it without any clear explanation. Hence, it would seem like it is re-releasing the feature again.
Improving The Feature
The platform’s improvements for this feature are:
- A QR functionality.
- Block explorer support.
- A display functionality for the dollar worth of the crypto assets involved in any transaction.
- A better interface for transaction history.
In this current iteration, transactions are limited to ten with a cap of $2.99K.
Any transaction amount that exceeds $2.99K will activate the bank secrecy act, which requires a record of all funds transferred across the platform. Robinhood further said, “the security measures we’ve put in place will ensure that our customers can perform their crypto transactions securely.”
HOOD Price Action
Robinhood share (HOOD) is down 83% from its all-time high and trades at $13.68 as of this writing. Time will tell whether the full-scale launch of Robinhood’s new crypto wallet feature will positively impact HOOD’s price. However, the company’s 12-month performance report will affect HOOD’s price, which is due for release next week.
The platform’s Q3 earnings report was $51m short of its $234m earnings from its Q2 report. The uncertain crypto regulation, which caused a significant decrease in trading revenue, is the cause of this massive decline in earnings revenue. A top FinTech researcher at JMP securities (Devin Ryan) opined that the drop in HOOD share price is mainly the result of increased selling pressure and not as much as the firm’s business environment.
Speaking with Yahoo finance!, Ryan revealed that as of today, nearly all HOOD shares are tradable compared to the 72m shares that were tradable when the company went public last year. There were persistent rumors that factors that caused a decline in the Q3 earnings of Robinhood may continue into the new quarter in October.
HOOD shares declined by nearly 15% following that rumor. Asides from the rumors, increased selling pressure resulting from the unlocking of almost 50m shares also caused a decline to HOOD price. A Marketbeat data revealed that 14 wall street analysts are bullish about HOOD, with some predicting it to reach $65. However, many of them forecast that the platform’s growth may not be as fast as it has been in the past, especially during Q2 2021.