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This New Robinhood Update Is Bigger Than It Seems

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TL;DR

  • Robinhood opened up trading to all 50 US states, so we now have an app with ~23M funded users, with a clear intent to invest, who now have a familiar, low friction way to invest in crypto.

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Right, so Robinhood just opened up crypto trading on its app to all 50 US states (plus Puerto Rico and the US Virgin Islands).

We know, we know — total snooze fest!

But there’s insight to be found here…

You know those ‘Round up for charity?’ prompts you see at the supermarket?

In 2016, only 16% of charity campaigns used them. By 2022, 67% of all major charitable drives were using them, and in that year, those ~5-10c round up donations raised $749M dollars!

They work so well because:

  1. They take technology/processes that consumers are already very familiar with (paying electronically at retail locations)

  2. Interact with them at their point of ‘peak intention’ (the intention being: to pay for something)

  3. They lower friction and make the decision easy, by making a small ask (1-99c donation)

Robinhood now hits those same points for retail crypto investors, across the US.

Cause here’s the thing:

Most retail investors use Robinhood to invest (because it’s easy to use, and takes no fees). When they use the app — their intention is typically: find opportunities and invest.

So we now have an app with roughly 23M funded users, with a clear intent to invest, who now have a familiar, low friction way to invest in crypto.

(No new interface to learn, no seed phrases to write down, no googling ‘what is a crypto wallet and why do I need one?’).