Robinhood announces zero commission crypto trading

Online brokerage platform Robinhood is getting into crypto with zero-commission trading in February
26 January 2018   696

Robinhood plans to extend its services to crypto trading. The platform is already quite popular with younger audience, the median user age is somewhere around 26 and total user base already exceeds 3 million people. The move may be ambitious, but it's logical, considering the target audience.

The Robinhood Crypto will operate on break-even basis, with developers not planning to profit from it for the foreseeable future. In perspective it will allow the project to rake up the audience and even lure the people away from other exchanges, who take unjustified fees. Also, there will be no minimum purchase amount, which will also increase the popularity.

Vlad Tenev and Baiju Bhatt, co-founders of Robinhood, also said, that the company will obtain large amounts of cryptocurrencies for trading through partnership with several larger institutions and that the purchase fees will be incorporated into large-volume discounted contracts and not passed down to the users.

The Robinhood Crypto will start up in February in the US, where they acquired the regulatory approval to start trading operations. Already the users can set up alerts for Bitcoin, Ethereum, Litecoin, XRP, NEO and 11 other altcoins to monitor prices.  

SEC Suspends Trading in 3 Companies

On Friday The U.S. Securities and Exchange Commission temporarily suspended the trading of three companies as they made the purchase of cryptocurrency and blockchain-related assets
17 February 2018   126

According to the announcement, the trade of  Cherubim Investments, Inc., PDX Partners, Inc., and Victura Construction Group, Inc. will be suspended between 9:30 a.m. EST Friday and March 2. The notice was dated Feb. 15.

SEC stated that its trading suspension orders state that recent press releases issued by CHIT, PDXP, and VICT claimed that the companies acquired AAA-rated assets from a subsidiary of a private equity investor in cryptocurrency and blockchain technology, among other things.

The release also indicates additional reasons for the suspensions. The agency’s orders also say there are questions regarding the nature of the company's business operations. In case of CHIT, the Commission suspended trading in the securities because of its delinquency in filing annual and quarterly reports.

In August 2017, the SEC  issued a warning for investors about the companies that may publicly announce ICO or coin-related events to affect the price of the company’s common stock.

Fraudsters often try to use the lure of new and emerging technologies to convince potential victims to invest their money in scams. 

U.S. Securities and Exchange Commission