16.05.2021

Robinhood Trading App Seals $280M in Sequoia-Led Round

Publicly announced May 4, the Series F was led by venture capital firm Sequoia, alongside existing and new investors that included NEA, Ribbit Capital, 9Yards Capital and Unusual Ventures.

Popular stock and cryptocurrency trading app Robinhood has surpassed its financing goals by raising $280 million in Series F funding at an $8.3 billion valuation.

Last month, Cointelegraph reported that Robinhood had ostensibly been seeking to raise $250 million at an approximate valuation of $8 billion.

Alongside traditional equities and options, the app’s commission-free crypto trading service supports major coins such as Bitcoin, Ether (ETH), Bitcoin Cash (BCH) and Litecoin (LTC), as well as smaller-cap cryptocurrencies like Ethereum Classic (ETC) and Dogecoin (DOGE).

Appetite for trading surged during March volatility

Robinhood’s raise comes shortly after a series of high-profile outages on its platform this March – one of which purportedly made Robinhood traders miss out on the biggest one-day point gain in the Dow Jones’ history.

The app has nonetheless seen record revenue growth during the COVID-19 pandemic, rising from $20 million in March 2019 to $60 million March 2020.

In its Series F announcement yesterday, Robinhood said it was “humbled that people are turning to Robinhood” amid “challenging times and market volatility.”

So far in 2020, the app has reportedly added over 3 million funded accounts; half of new users this year are apparently first-time investors.

The aftermath of the March logjam

At the end of March, Robinhood confirmed it had been contacting users affected by the month’s outages, pledging to reimburse them in dollars at a sum to be determined on a case-by-case basis.

The company has declined to comment on the total number of affected users. It faces at least one federal class lawsuit filed on behalf of several traders following an outage at the start of March.

Research Center in Mexico Warns Locked-Down Citizens to Keep Away From Cryptos

On May 4, Alberto Aldape Barrios, director of the Center for Business Research and Development (CIDE), called on the residents of the city of Aguascalientes to be cautious with any investment opportunity in cryptocurrencies.

In statements to local newspaper El Heraldo, Barrios warned of “financial speculation” aroused amid the COVID-19 crisis, so there would be high risk with investments in bitcoins (BTC), futures, options, and Forex.

Bitcoin’s volatility post-COVID-19 could be dangerous

The head of CIDE thought that the price of Bitcoins will leap when the pandemic is under control. Barrios said:

“With cryptocurrencies, you cannot speculate because you can lose all your money in one day. No institution backs that currency.”

However, the CIDE director claims to be aware of the adoption of cryptocurrencies in other countries. Still, he does not believe that it is advisable to invest in bitcoins in Mexico, since “it is a market for professional speculators.”

He also called for locked-down citizens to be cautious with offers to invest in futures, options, and Forex markets since he claims that the fall in oil was a clear example of how risky this type of investment is.

About the flow of information on social networks, Barrios said that people should be careful with any promises of generating a lot of money in a short time.

Popularity of crypto in Mexico keeps rising

The appreciation of the CIDE director contrasts with the latest information regarding the adoption of cryptocurrencies in Mexico.

Cointelegraph Español reported on May 4 that the adoption of cryptocurrencies in Mexico has been increasing since 2018.

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