Shiba Inu Coin News Today – Robinhood

Crypto fans were loading upwardly on
Shiba Inu
(SHIB
-0.xl%
)

after
Robinhood Markets
(HOOD
1.12%
)

announced trading availability on Monday morning time. The token initially soared as much as 30% on the news, and 12 hours later Shiba Inu was nonetheless trading a healthy 17% higher up where it was when the news bankrupt.

It’s obviously nifty news for Shuba Inu to observe its way onto a new exchange. It also helps that Robinhood merely had vii digital currencies available before adding iv new denominations, including Shiba Inu, on Tuesday.

I’k still non convinced that the initial rally volition stick. Let’south go over some of the reasons availability on Robinhood isn’t a game-changer for Shiba Inu fans.

Someone celebrating what she's seeing on a smartphone.

Image source: Getty Images.

1. Robinhood isn’t every bit relevant as you might call back

At that place’s no denying that Robinhood Markets shook up the brokerage industry a couple of years ago. Would well-nigh of the leading platforms be offer commission-costless trading otherwise? The problem at present is that the platform has lost its grip on its young trading base.

Robinhood lost traction as 2021 played out. There’s no shortage of metrics that prove information technology.

  • The number of monthly transacting users slipped from 21.3 million in the 2nd quarter to eighteen.9 million in the third quarter, and and then 17.3 one thousand thousand in the fourth quarter.
  • Average acquirement per user has fallen in iii consecutive quarters. Robinhood has gone from generating $137 per user during the get-go quarter to $64 in the fourth quarter.
  • Assets under custody were lower by the end of the year than where they were at the midpoint of 2021.

The force per unit area points are everywhere. Fewer people are trading, and people are trading less. That’southward a bad look for a trading platform, and we oasis’t even gotten to the most problematic metric.

Robinhood isn’t just about crypto. It’southward likewise a hotbed for options and stock trading. Stock and options trading has held fairly steady through the concluding iii quarters of 2021, just the aforementioned can’t be said for crypto. Robinhood reported transactions-based crypto revenue of $233 million in the second quarter, followed by $51 1000000 in the third and $48 meg in the fourth quarter. Put some other mode, Crypto transactions acquirement went from 52% of Robinhood’s business in the 2d quarter to only 18% by the end of the year.

2. Every spike is different

If being added to Robinhood’s select number of crypto choices is so praiseworthy, shouldn’t all of the digital currencies added to Robinhood feel the same pop? In the same 12 hours of Shiba Inu’s 17% ascent, two of the three other cryptocurrencies rose less than iv%. 1 has a higher market cap than Shiba Inu, and the other ane is lower.

Is there any reason for Shiba Inu to be the one to surge higher? Is it just because Shiba Inu’s a meme money? There
is
a bullish case to exist fabricated for Shiba Inu; I’grand just pointing out that Tuesday’s pop is more based on hype than on the sustainable claim accorded to a crypto that’s been added to Robinhood. You might also want to check in on the uninspiring returns from some of the seven cryptocurrencies that take been trading on the platform for longer.

3. Information technology’southward too tardily for Robinhood to be taken seriously in crypto

Robinhood is trying to make upwards for the lost time it squandered. It’s finally rolling out a crypto wallet to make its digital currencies easier to move abroad from the platform, but as we’ve seen in recent quarters, crypto traders have already cleared out.

Investors are smart plenty to see through the “free” crypto trading that Robinhood offers, and the folks sticking around the once trailblazing platform tend to be pocket-size players these days. Having Shiba Inu coin now available is non detrimental to the crypto, only it’due south also not going to affair beyond Tuesday’s initial buzz.

Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has no position in whatsoever of the stocks mentioned. The Motley Fool has a disclosure policy.

Source: https://www.fool.com/investing/2022/04/13/3-reasons-robinhoods-addition-of-shiba-inu-doesnt/

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