Ethereum-based services like nonfungible tokens and ERC-20 tokens won’t be supported by the cryptocurrency wallet.
The digital wallet function will be made available to 2 million more users of the cryptocurrency and stock trading app Robinhood.
More than two million qualified clients who had been in the queue for the digital wallet are now able to send and receive cryptocurrencies, according to a statement made by Robinhood’s chief product officer Aparna Chennapragada on Thursday at the Bitcoin 2022 Conference in Miami. To decrease transaction time, cost, and carbon impact, the platform also plans to incorporate the Bitcoin Lightning Network.
Due to local laws, users in Hawaii, Nevada, or New York will not be able to access the cryptocurrency wallets, claims Robinhood. Since September 2021, the site has been testing its digital wallet functionality; the first alpha transfer using Dogecoin was completed in November 2021, and the beta version was made available to tens of thousands of users in January 2022.
Although some users noted that the wallet will not allow Ethereum-based services like nonfungible tokens and ERC-20 tokens, the majority of Robinhood customers’ reactions on social media after a seven-month wait appeared to be positive. The FAQ section of the company states that any NFTs or unsupported tokens transferred to a Robinhood Ethereum address may be lost.
In the fourth quarter of 2021, Robinhood reported transaction-based revenue from cryptocurrencies of $48 million, a decrease of about 6% from the third quarter’s $51 million. Additionally, since the company went public in July 2021, the share price of Robinhood (HOOD) on the Nasdaq has dropped. It went from an all-time high price of $70.39 on Aug. 4 to $12.17 at the time of publication, a reduction of more than 82%.