Robinhood confirmed that it will not support any Ethereum-based services like the ERC-20 tokens and nonfungible tokens (NFTs). The crypto and stock trading app will roll out its digital wallet feature for 2 million extra users.
In an April 7, 2022 announcement at the Bitcoin 2022 Conference in Miami, Robinhood chief product officer Aparna Chennapragada stated that all eligible customers who had been on the waitlist for this particular digital wallet — at least two million people — can now send and receive cryptos.
Furthermore, the platform now aims to integrate the Bitcoin Lightning Network to reduce the time and cost of transactions and their carbon footprint.
Super pumped to announce on the #Bitcoin2022 stage that @RobinhoodApp has rolled out wallets access to the nearly 2 million people on the WenWallets waitlist.
— Aparna Chennapragada (@aparnacd) April 7, 2022
Based on an official statement by Robinhood, the crypto wallets are not yet available for users in Nevada, Hawaii, and New York “due to local regulations.” The firm had been testing its digital wallet feature since September 2021, finishing its first alpha transfer using Dogecoin (DOGE) in November 2021 and unleashing the beta version for tens of thousands of users in January 2022.
The reaction from a majority of the Robinhood users on social media after a 7-month wait appeared to be mainly positive, although some pointed out that the wallet will not support Ethereum (ETH)-based services like NFTs and ERC-20 tokens. Based on the company’s FAQ page, any nonfungible tokens or unsupported tokens that are sent to a Robinhood Ethereum address might get lost.
I had been screaming that #Robinhood wallet will come in April followed by #Shib listing – step one is done @DelCrxpto pic.twitter.com/0zqeUKDUWw
— Krypto Wolf (#BURNLY #BURNSQUAD) (@krypto__wolf) April 6, 2022
Robinhood said that $48 million worth of transaction-based revenue from cryptocurrency in Q4 2021, was a nearly 6% plunge compared to the $51 million recorded in the third quarter. Moreover, the spare price of Robinhood (HOOD) on the NASDAQ has dropped since the company went public in July 2021, plummeting from an all-time high price of $70.39 on August 4 to $12.17 at the time of writing — a drop of at least 82%.
