Robinhood's $200M Bet on Crypto

Robinhood's $200M Bet on Crypto

Joey Segura

-

Jun 7, 2024

It's 2021 all over again and I don't know how to feel.

Celebrity crypto influencers are back, new meme coins are pumping every week, and massive U.S. companies are absolutely dumping cash into crypto infrastructure. 

With Robinhood buying up the Bitstamp exchange this week for $200 million, the U.S. has gained yet another multi-billion dollar company offering a full suite of crypto trading features to their users.

That's over 10 million new active, funded investment accounts, and more than $100 billion in assets being brought right to the front door of web3.

Big news for Robinhood, huge news for crypto adoption. 🎉

In other news, the man who largely instigated the first meme-stock rally in 2021, Keith Gill, returned to 'X' last month after a 3 year hiatus, and just returned to YouTube with a new live stream earlier today.

GameStop's stock $GME halted trading multiple times during the live stream and is unfortunately down nearly 40% on the day, marking a loss of over $200 million for Keith's comically large position in the company.

Although Keith didn't announce any plans to overthrow the New York Stock Exchange or reveal any secret new meme stock positions, his presence on the live stream alone was enough to reinvigorate the stock and crypto investing communities alike.

Keith's return, crypto becoming bipartisan in the U.S., and new all-time highs for Bitcoin have caused "We're so back." tweets to break levels not seen since 2021.

But there's something vaguely eerie about watching $PEPE and $GME soar to new highs when macroeconomic conditions still feel relatively uncertain.

There's no one-size-fits-all rule for smart investing, but it's often said when people start getting greedy, it's usually a good time to exercise some caution.

I personally won't be, but you should definitely consider it.

As always, I'm not a financial advisor, but if you want to get involved with a great group of people discussing market updates like these daily, join us in the Giddy discord.

Or give us a follow on Twitter to stay in the loop.

- Joey Segura

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DefiQ, Inc. DBA Giddy, is registered with FinCEN as a Money Services Business (MSB), registration number 31000214426385.

DISCLAIMER: Giddy is not a custodian of cryptoassets and does not provide a guarantee of protection; you are responsible for the safekeeping of your cryptoasset private keys. Giddy does not provide financial, investment, tax, or legal advice. No communication from Giddy is intended to imply financial advice, nor that any cryptoasset is low-risk. All cryptoassets involve a significant degree of risk, including the possibility of high volatility or permanent loss.

Giddy provides information from 3rd parties and blockchain networks, and does not guarantee this information is correct, complete, or updated. Cryptoassets are not covered by either FDIC or SIPC insurance. For more information about the risks of virtual currency, see the CFTC’s Customer Advisory, the CFPB’s Consumer Advisory, the SEC’s Investor Alert, and FINRA’s Investor Alert.

Passive income derived from decentralized finance activities such as staking and liquidity farming carries with it additional risks which could include permanent loss of funds. Consult a professional before investing money on the blockchain. Never invest more money than you can afford to lose.

© 2024 Giddy. All rights reserved.

Not FDIC Insured · No Bank Guarantee · May Lose Value

DefiQ, Inc. DBA Giddy, is registered with FinCEN as a Money Services Business (MSB), registration number 31000214426385.

DISCLAIMER: Giddy is not a custodian of cryptoassets and does not provide a guarantee of protection; you are responsible for the safekeeping of your cryptoasset private keys. Giddy does not provide financial, investment, tax, or legal advice. No communication from Giddy is intended to imply financial advice, nor that any cryptoasset is low-risk. All cryptoassets involve a significant degree of risk, including the possibility of high volatility or permanent loss.

Giddy provides information from 3rd parties and blockchain networks, and does not guarantee this information is correct, complete, or updated. Cryptoassets are not covered by either FDIC or SIPC insurance. For more information about the risks of virtual currency, see the CFTC’s Customer Advisory, the CFPB’s Consumer Advisory, the SEC’s Investor Alert, and FINRA’s Investor Alert.

Passive income derived from decentralized finance activities such as staking and liquidity farming carries with it additional risks which could include permanent loss of funds. Consult a professional before investing money on the blockchain. Never invest more money than you can afford to lose.