The entertainment business of Jay Z, Roc Nation, has invested money in Robinhood’s cryptocurrency exchange platform. A business unit of Roc Nation called Arrive gave an official statement that it had put money into Robinhood due to its intentions of improving financial market.
This announcement is the most recent occurrence of a celebrity investing money into Robinhood’s investment platform. And Jay Z is in good company; Robinhood also features names such as Snoop Dogg, and Nasir Jones to add to its growing list of celebrities.
Last year, Arrive was launched as a partnership with startup companies and to give them branded services. Such services include capital and investments, as well as business development expertise.
According to the investment platform Robinhood, more than 1 million customers have signed up to their platform waiting list. Robinhood allows anyone to trade stocks and exchanged traded funds. Also, Robinhood features the ability buy and sell both Bitcoin and Ethereum at the same time.
Robinhood is Highly Anticipated by the Market
Robinhood’s entrance to the market has been anticipated by the whole crypto community as most of the platform’s trading base is from financial markets that usually trade stocks and commodities on a daily basis. The roll out of Robinhood could earn the company millions of users more to the idea of cryptocurrencies, which is significant as they are a brand new class asset.
A good size of the community is keen to see Robinhood’s potential to play out as a key competitor to Coinbase, which is presently the largest company in the market.
The launch of Robinhood crypto is highly anticipated, but Arrive’s statement also revealed that Robinhood only has 3 million users, with a valuation of $1.3 billion. This is a small number compared to existing platforms such as Coinbase, which has 10 million users, and have larger market valuations.
Cryptocurrency Investment Platforms Grow Fast
Coinbase surpassed the 10 million user market back in November of 2017. And it’s not just Coinbase that has experienced this kind of growth. In less than 6 months, the Binance crypto platform gained 6 million users, with one million users being added each month. This prompted speculators to consider Robinhood’s impact on the market, and that it could be overestimated.
It’s also possible that the majority of the 1 million users on the waiting list for Robinhood are existing clients of Coinbase or Binance, and have sought out the Robinhood platform to have more choices when it comes to trading platforms.
Despite this, it’s still a good sign that huge companies outside of the finance and crypto industries are taking the crypto market seriously. This is in spite of the fact that the crypto market is still in its early stages, with most companies still to wake up to the realities of how cryptocurrencies will shape all aspects of finance and investing.
If this rate of investment from high-profile investors continues, then it could be seen as a good thing for the market as it promotes competition, which then drives the cost of using those services down.