Robinhood Reportedly Testing Feature to Protect Crypto Investors From Volatility
Zero-fee trading platform Robinhood is working on a new feature that will help protect users from crypto price volatility, according to a report from Bloomberg.
Bloomberg’s report, which was based on iOS developer Steve Moser’s analysis of new code contained in a beta test version of the Robinhood iPhone app, claims Robinhood is developing a new feature called “price volatility protection,” which is aimed at reducing the impact of crypto price volatility on users. According to the report, the code contains a message that reads: “To protect your orders against price volatility, we may sometimes skip your recurring orders or buy less than your chosen amount.”
A Robinhood spokeswoman declined to explain or comment on the potential new feature.
Robinhood is also testing an option called “round up investments” that will allow users to purchase specific stocks with “spare change.” Whether this money will come from rounded-up debit and credit card purchases as done by competitors like Acorn is unclear.
Robinhood, which is going public this week, struggled with partial outages during the dogecoin spike in May, leading to criticism and a loss of confidence from its user base as well as regulators.
Crypto has become an increasingly important part of Robinhood’s business model, with approximately 17% of its Q1 revenue coming from crypto transactions—up from 3% in Q1 of last year.
In a virtual roadshow for investors last week, Robinhood’s CEO Vlad Tenev said that expanding and improving the company’s crypto offerings and the app’s security, which Robinhood was recently fined for, is a priority.Source