Robinhood which offers a trading platform for stocks and crypto finished a $323 million dollar raise last week, upping their valuation to $7.6 billion. The latest round was fueled by Sequoia, Ribbit Capital & DST. As we mentioned in a previous article, Robinhood is one of the top financial platforms for millennials and they are just getting started with Crypto. As discussed, Robinhood currency supports digital assets such as Bitcoin, Ethereum, Bitcoin Cash, Ethereum Classic, Litecoin and Dogecoin. Could a portion of the $323 Million raise be going towards Crypto? We think it makes complete sense with their business model. As discussed, Robinhood is so appealing due to its framework of offering users the ability to track their stocks and crypto in one space. This does not exist within the current crypto powerhouses such as Coinbase and Binance. Investors like efficiency and Robinhood could make a serious dent in the digital asset space by offering support for other cryptocurrencies. We’ve seen platforms like Binance continue to take serious market share due to its ability to offer many more digital assets than their competitors. If Robinhood has plans to expand its digital asset space, you could start seeing them take market share from the larger players.
Lolli Continues to Onboard Merchants
Last week, Lolli announced that they are now affiliated with 900 different merchants across the globe. As we discussed in a previous article, Lolli gives users the ability to shop and earn 3-5% back in Bitcoin. This movement has been more appealing to shoppers due to the fact Bitcoin can potentially grow in value, which is a stronger value prop than just receiving “cash back” for purchases. In recent reports, Lolli is working hard to expand into grocery shopping and pharmacy. Lolli most recently announced their partnership with Safeway.com , where users can now order groceries and pharmacy items online. This was a great move by the company to help aid mass adoption in crypto during a time where individuals are looking for online efficiencies. Evidence of this can be explained by the massive growth in companies like GrubHub, Pillpack and many other companies. Lolli is creating a massive pipeline and easily introducing people to crypto, which is exactly what the space needs.
SEC No Action Letter
One of the major ongoing issued in Crypto is the fact that many projects could be offering “securities” with their cryptocurrencies. Some projects have told the public that their coins/tokens are not securities and the SEC has disagreed by sending them action letters stating that the company must register their offerings as securities. This has created massive sell-offs for certain projects due to uncertainty and discomfort. Last week, the SEC sent a “No Action Letter” to crypto gaming platform “Pocketful of Quarters” whom is creating a universal gaming token. This was a positive move for the crypto industry all together because regulators are creating more clarity. It has been very misunderstood in the crypto space as to what framework is needed to avoid “security status.” When the SEC issues a “No Action Letter” it basically means the company can pursue their business model and no action is needed which is the best case scenario. As the industry continues to issue more No action letters, it will continue creating more transparency that new and current projects can utilize to move business forward in our opinion.