Robinhood purchases the bitcoin price watcher for WO BitStamp for 200 Million

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Quote from: The Sceptical Chymist on June 13, 2024, 12:46:05 PM

Quote from: DaveF on June 10, 2024, 10:56:41 AM

I'm putting it more as a US based company that has mostly US based clients (Robinhood) wanted to expand their crypto portfolio into more parts of the world and buying BitStamp is a move in that direction.

No doubt. Except last I knew, Robinhood absolutely sucked as a company and they let customers buy and sell cryptocurrencies like they were a bucket shop from many years past, i.e., people basically bet on whatever crypto they bought or sold but there was never actually any buying or selling going on. You weren't able to withdraw the crypto you bought, nor could you deposit any.

Is Robinhood still operating like that? I had an account once but abandoned it after they weren't able to provide me with a phone number to call in order to solve a problem, nor were they willing to call me.

Would you be more confident of an exchange holding your cryptocurrency if they were owned by let's say a company with a long list of accomplishes in the technical sector such as Sony?

https://x.com/BTC_Archive/status/1807716917005648249

The Sceptical Chymist

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Quote from: DaveF on June 10, 2024, 10:56:41 AM

I'm putting it more as a US based company that has mostly US based clients (Robinhood) wanted to expand their crypto portfolio into more parts of the world and buying BitStamp is a move in that direction.

No doubt. Except last I knew, Robinhood absolutely sucked as a company and they let customers buy and sell cryptocurrencies like they were a bucket shop from many years past, i.e., people basically bet on whatever crypto they bought or sold but there was never actually any buying or selling going on. You weren't able to withdraw the crypto you bought, nor could you deposit any.

Is Robinhood still operating like that? I had an account once but abandoned it after they weren't able to provide me with a phone number to call in order to solve a problem, nor were they willing to call me.

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Quote from: DaveF on June 10, 2024, 10:56:41 AM

I'm putting it more as a US based company that has mostly US based clients (Robinhood) wanted to expand their crypto portfolio into more parts of the world and buying BitStamp is a move in that direction.
This way if their crypto trading side gets shut down in the US for some reason they have an non US based platform to keep them going.

-Dave

Thank you for that Dave.

https://www.youtube.com/watch?v=n6jap6LtCb4
Robinhood to buy crypto exchange Bitstamp for $200 million: CNBC Crypto World
"Expand it's global footprint."
https://www.youtube.com/watch?v=n6jap6LtCb4

This is a damn big move.

"A good sign for the crypto industry."
Let's hear it from Elliott Chun of the Architect Partners.
https://www.youtube.com/watch?v=T7VzA_Y0euU
Jump to 4:00.

Is Robinhood also trying to get away from SEC? I think that's my question here. They are being cornered and politically attacked and I think they just said to themselves, "It's enough. We are buying something that moves outside US and you cannot touch us anymore." Grin

Something like that.

criptoevangelista

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Quote from: DaveF on June 10, 2024, 10:56:41 AM

I'm putting it more as a US based company that has mostly US based clients (Robinhood) wanted to expand their crypto portfolio into more parts of the world and buying BitStamp is a move in that direction.
This way if their crypto trading side gets shut down in the US for some reason they have an non US based platform to keep them going.

-Dave

It makes perfect sense... They are possibly protecting their business so that in the future, if there is persecution in the crypto industry, they are not tied to just one geographic location, we all know that the dynamics regarding laws and persecution change every 4 years.

JusticeSolus

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That's exciting.

A lot of people from my job that used crypto for the first time used it through Robinhood. Good to see they are doing something that could benefit their clients.

Some of them hold all of their crypto on Robinhood though, which I try to tell them isn't a good idea but you guys know how that conversation ends up with normal people lol.

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True DaveF,

It is a smart move to make as the US has the most strict regulation laws when it comes to cryptocurrency.
Just look at Coinbase and the redtape they have had to go through to just be in the forefront of the mass adoption of bitcoin in the public eye, having commercials during live sporting events is enormous at a grand scale.
So this purchase of BitStamp is also a good move for it's own clientbase.

Noticed some key elements while looking at what one of the founders of the company has achieved since it's inception on 2011:

https://www.crunchbase.com/person/nejc-kodric

"The deal add four to five million new cryptocurrency customers to the company but, more significantly, it will also let the popular trading app take over the 50 licenses that Bitstamp has in Europe and around the world."
source: https://fortune.com/crypto/2024/06/06/robinhood-just-made-a-very-big-bet-on-crypto-what-the-200-million-bitstamp-deal-means-for-the-company

Another interesting read to see what implications it brings along with it at the Wall Street Journal from an American standpoint on this deal:
https://www.wsj.com/business/deals/robinhood-doubles-down-on-crypto-with-deal-for-bitstamp-eade3276

DaveF

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I'm putting it more as a US based company that has mostly US based clients (Robinhood) wanted to expand their crypto portfolio into more parts of the world and buying BitStamp is a move in that direction.
This way if their crypto trading side gets shut down in the US for some reason they have an non US based platform to keep them going.

-Dave

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The investment bank Robinhood made a confident acquisition of a long time in the business crypto exchange last week.
You know they want to stay in the SEC cryptocurrency regulatory board and the bitcoin maximalists for their core spot on the bitcoin price good graces with the purchase of well known crypto exchange BitStamp for $200 million USD cash.

source: https://thepaypers.com/cryptocurrencies/robinhood-to-acquire-bitstamp-for-usd-200-mln-in-cash--1268518

source: https://www.cointribune.com/en/crypto-robinhood-acquires-bitstamp-for-200-million

and lastly coindesk: https://www.coindesk.com/business/2024/06/10/robinhoods-acquisition-of-bitstamp-expands-its-global-reach-architect-partners

Does the culmination of these two big companies in their own respectful professions bring fourth acceptance of institutional markets into the cryptocurrency one?

Topic: Robinhood purchases the bitcoin price watcher for WO BitStamp for 200 Million (Read 165 times)