Posted October 26, 2022
By Matt Insley
New Crypto on Robinhood
Of the 19 available cryptocurrencies on the Robinhood platform, more than a third hold top-10 market cap positions. Well over half of the listed crypto can be found in the top-20, while nearly three-quarters of Robinhood’s listed cryptos are top-30 cryptos by market capitalization.
When we last spoke of cryptocurrency on the Robinhood app, we went over some of the pros and cons of purchasing and storing crypto assets on a limited platform, known primarily for it’s commission-free stock trading.
To recap the pros:
- Robinhood does not charge commissions or fees. This holds true for both stocks and cryptocurrency.
- The app offers crime insurance against theft and cybersecurity breaches. This is huge in an industry that has become infamous for its fraud risk.
As for cons:
- The limited amount of crypto available through the Robinhood app is the least appealing aspect of utilizing the platform to buy, sell, and trade cryptocurrency.
And Robinhood seemingly understands this short-coming. Just this week, two more digital currencies were listed with the brokerage: AAVE and Tezos (XTZ). As stated above, the majority of crypto listed on Robinhoodfall in the top-20 list by market cap. For these two platform newcomers, this is not the case. You won’t even find these in the top-30…or top-40!
So, Why AAVE and Tezos?
Tezos, a decentralized, self-upgradable, community developed, open source platform, was developed in 2014 by Kathleen and Arthur Breitman. It’s native token, XTZ, was released to the public in 2017. They were one of the first blockchain projects to introduce a proof-of-stake (PoS) protocol versus proof-of-work (PoW). And today, Tezos has a market cap valued over $1 billion.
As noted, Tezos is self-upgradable; it funds its own development. When the network needs an upgrade, developers submit their suggestions, including an invoice for the proposed work, payable in XTZ. Once approved and executed, the protocol mints tokens and remits payment.
The staking structure of Tezos native token allows for anyone holding any amount of XTZ to participate in the blockchain. Yes, even one single token. In order to prevent dilution, the newly minted rewards are proportional, which largely incentivizes continued network improvement.
XTZ is up 8% since being added to the Robinhood platform, which now boasts a total of 19 available cryptocurrencies.
Robinhood seemingly holds high standards when it comes to choosing cryptoWhile AAVE ranks 45th by market capitalization amongst all cryptocurrencies, it’s still a top contender. This is because, when it comes to Decentralized Finance (DeFi) tokens, AAVE actually ranks 8th, to date.
What makes AAVE unique is its existence as a fully decentralized crypto lending platform. Users can borrow crypto funds and assets, while paying interest, or lend them, while earning interest — with no middleman.
AAVE was founded by a Helsinki-based programmer, Stani Kulechov. At the time of their initial coin offering (ICO) in 2017, AAVE was known as ETHLend. The business rebranded the following year as AAVE, which is the Finnish word for “ghost” — a reference to transparency. They have since been dubbed the “ghost protocol.”
By 2020, AAVE reigned as the best performing DeFi asset. They have since partnered with several companies, seeing a huge jump in social engagement (as you know, this can be a strong predictor of growth in the crypto industry) and growing by 5% since Robinhood’s announcement.