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Robinhood to authorize Dogecoin withdrawals to other wallets

Photo of: Joseph Stone
by Joseph Stone

Like PayPal and Revolut, fintech Robinhood Crypto intends to integrate cryptocurrency transfers to third-party services. The opportunity for users to migrate their Dogecoin.

Robinhood sniffed out the opportunity early on and integrated Dogecoin into its cryptocurrency buying and selling service. However, the platform’s customers have experienced some chaotic episodes. At fault were technical breakdowns during Dogecoin’s volatility spikes.

Robinhood users might therefore look favorably on the announcement made by the company’s COO, Christine Brown. Like other players, the broker plans to allow transfers to third-party wallets. Just like PayPal, the cryptocurrency acquired on Robinhood Crypto remains in the company’s possession. Customers are under the obligation to use the latter to sell the Dogecoin acquired through it.

This restriction, which PayPal is about to lift, is undeniably a drag on the development of the user base. It is also a competitive disadvantage compared to the services offered by crypto exchanges.

However, Robinhood has big ambitions in this sector. As of Q1, the company had 9.5 million crypto customers. Three months earlier, in the last quarter of 2020, that base had reached just 1.7 million users.

Thanks to the integration of external transfers, Robinhood therefore hopes to add a loyalty component to the conquest component (6 million new customers over January and February 2021). This possibility is widely acclaimed in the market.

A great supporter of Dogecoin, Mark Cuban felt that Robinhood was penalizing its growth by not allowing investors to transfer their Doge tokens out of the application. The billionaire also believes that these transfers would benefit the value of Dogecoin.

When will these tokens be able to free up and be moved? Christine Brown doesn’t specify that to Decrypt. The executive assures that such a feature would be complex to implement. In addition, she says the platform’s traders need to be aware of the risks associated with the open crypto ecosystem.

“We want to make sure we build an experience – not just the technical basis of sending and receiving coins, but the user experience around it – that is intuitive, makes sense and reduces risk for our users,” the executive further justifies.