According to reports, stock and cryptocurrency trading app Robinhood is exploring a way to better protect users from fluctuating cryptocurrency prices.
According to a Bloomberg report on Tuesday, the trading app is Serving In a function called “price fluctuation protection”, this function will modify certain cryptocurrency orders based on price fluctuations. A message in the feature code stated that Robinhood “may sometimes skip your repeat orders or purchase less than the quantity you choose” to protect transactions from price fluctuations, but will notify users before taking such actions , And never buy more than the quantity you choose.
Robinhood CEO Vlad Tenev said: “We have been doing a lot of work behind the scenes to provide our cryptocurrency customers with the features they have been asking for.” “We want to safely introduce new features. We have to do a lot from the beginning. .”
Robinhood briefly introduced the report of the proposed feature Suspend instant deposits for the purchase of cryptocurrencies In January. The trading app cited “extraordinary market conditions” at the time, possibly referring to retail investors from Reddit buying Dogecoin (dog)——The era currency soared by more than 900% and fluctuated throughout the year. It rose to a record high of US$0.68 in May.
Robinhood later reported that 34% of its revenue in the first quarter of 2021 was Directly attributable to the transaction For cryptocurrencies based on memes, and claimed that “if the Dogecoin market deteriorates or the price of Dogecoin falls”, its business may be adversely affected. According to the trading application, 17% of its total revenue in the same period came from transaction-based revenue from all crypto transactions, and the transaction value of more than 9.5 million customers was approximately US$88 billion.
In addition, it is reported that US regulators have turned their attention to trading applications.The Financial Industry Regulatory Authority announced in June that it would Approximately US$70 million fined on Robinhood According to the survey results, the application has caused “extensive and significant harm” to thousands of users, and has shown “systematic supervision failure” since September 2016. Robinhood stated that it has reached an agreement in principle with regulators to pay some fines on the basis of “non-recognition and non-repudiation.”