TL;DR Breakdown
- Robinhood to introduce new feature in crypto space to protecr investors from high volatility
- Robinhood CEO say unique feature has been in high demand from users
Robinhood crypto and stock trading platform reportedly are working on a novel and unique feature that would safeguard user investments against high volatility.
Bloomberg reported on Tuesday that the unique feature being worked on by Robinhood crypto app is called “price volatility protection.” It would reportedly modify certain crypto orders depending on fluctuations in price.
In the program code of unique feature, Robinhood says that it works such that it may sometimes skip recurring orders or buy less than users chosen amount to protect trades from price volatility.
However, it notes that users would be informed before such actions are taken, and it would never purchase more than the amount selected.
Robinhood CEO Vlad Tenev, while speaking on the new feature, said that the firm has been doing a lot of work behind the scenes to provide crypto customers with the functionality that they’ve been asking for. He said further that these features are going to be introduced safely as there’s a lot of items they have to get right from the start.
Robinhood crypto suspends instant deposits for crypto purchases
The unique feature which the Robinhood crypto and stock trading app is set to introduce to the crypto space comes after the firm recently suspended instant deposits for crypto purchases in January.
Extreme market conditions was the excuse of the firm for stopping instant deposits. The firm was referring to retail investors from Reddit pumping Dogecoin (DOGE), making the meme coin surge by 900 percent at the time.
Since then, DOGE has been volatile after tanking to an All-Time High at $0.68 in May.
Eventually, the firm made a lot of money from the meme coin as it posted that 34 percent of its revenue from the first quarter of 2021 was directly attributable to transactions on DOGE.
Unfortunately for Robinhood, regulators in the US have been on high alert on their crypto and stock trading app.
In June, the Financial Industry Regulatory Authority announced it would fine the firm of $70 million based on the results of an investigation alleging the app had caused “widespread and significant harm” to thousands of users.
