This New Robinhood Update Is Bigger Than It Seems
TL;DR
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Robinhood opened up buying and selling to all 50 US states, so we now have an app with ~23M funded customers, with a transparent intent to take a position, who now have a well-known, low friction solution to put money into crypto.
Full Story
Proper, so Robinhood simply opened up crypto buying and selling on its app to all 50 US states (plus Puerto Rico and the US Virgin Islands).
We all know, we all know — complete snooze fest!
However there’s perception to be discovered right here…
You realize these ‘Spherical up for charity?’ prompts you see on the grocery store?
In 2016, solely 16% of charity campaigns used them. By 2022, 67% of all main charitable drives have been utilizing them, and in that yr, these ~5-10c spherical up donations raised $749M {dollars}!
They work so nicely as a result of:
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They take expertise/processes that buyers are already very conversant in (paying electronically at retail places)
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Work together with them at their level of ‘peak intention’ (the intention being: to pay for one thing)
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They decrease friction and make the choice simple, by making a small ask (1-99c donation)
Robinhood now hits those self same factors for retail crypto traders, throughout the US.
Trigger right here’s the factor:
Most retail traders use Robinhood to take a position (as a result of it’s simple to make use of, and takes no charges). Once they use the app — their intention is usually: discover alternatives and make investments.
So we now have an app with roughly 23M funded customers, with a transparent intent to take a position, who now have a well-known, low friction solution to put money into crypto.
(No new interface to be taught, no seed phrases to write down down, no googling ‘what’s a crypto pockets and why do I want one?’).
