It’s no secret that Robinhood has been drawing a lot of attention lately in the crypto sphere, and much of that has to do with the fact that the online brokerage platform has been revealed as one of the largest holders of ETH. Specifically, Arkham Intelligence—an entity renowned for its ability to monitor and analyse cryptocurrency data—recently unearthed evidence indicating the Robinhood is the owner of the fifth largest eth wallet in the world, containing a staggering $2.54 billion worth of ETH.
These funds, according to Arkham, are under custody for user balances, which adds an interesting angle to the significance of Robinhood’s relatively sizeable ETH holdings. This essentially implies that Robinhood isn’t just holding these funds for the benefit of their bottom line, but rather as a secure depository for their users—a notion which should underscore their credibility in the eyes of current and potential users.
However, despite its increasing prominence in the world of cryptocurrency trading, Robinhood has reportedly seen a decline in their cryptocurrency trading activity over recent quarters. The second quarter, for instance, saw Robinhood’s crypto revenue plummet to $31 million from an initial $38 million in the first quarter.
Meanwhile, on the other side of the coin, we have Binance, a platform that recently reaffirmed its commitment to winding down support for its Binance USD (BUSD) by 2024. The crypto exchange, in its statement, urged its users to trade or convert their BUSD balances for First Digital USD (FDUSD) with no fees.
This move from Binance appears to coincide with the United States Securities and Exchange Commission’s recent allegations over BUSD being an unregistered security. As a result, the New York Department of Financial Services ordered Paxos to halt the issuance of BUSD.
It’s a compelling juxtaposition—on one hand, you have Robinhood gaining traction in the crypto world with its significant ETH holdings, and on the other, you have Binance, a long-established giant in the industry, making a calculated retreat from offering BUSD.
Regardless, the true winners in these circumstances are those who have armed themselves with the right knowledge, allowing them to react and adapt swiftly in response to the rapidly changing dynamics of the cryptocurrency market.
Source: Cointelegraph
