Stock and cryptocurrency trading app Robinhood is reportedly exploring a way for users to be better protected from volatile crypto prices.\u00a0<\/p>\n
According to a Tuesday Bloomberg report, the trading app is working on a feature called \u201cprice volatility protection,\u201d which would modify certain crypto orders depending on fluctuations in price. A message in the feature\u2019s code says Robinhood \u201cmay sometimes skip your recurring orders or buy less than your chosen amount\u201d to protect trades from price volatility, but will inform users before taking such action and never purchase more than the amount selected.<\/p>\n
\u201cWe\u2019ve been doing a lot of work behind the scenes to provide our crypto customers with the functionality that they\u2019ve been asking for,\u201d said Robinhood CEO Vlad Tenev. \u201cWe want to introduce new features safely, and there\u2019s a lot of items we have to get right from the start.”<\/p>\n
Reports of the proposed feature come after Robinhood briefly suspended instant deposits for crypto purchases in January. The trading app cited “extraordinary market conditions” at the time, likely referring to retail investors from Reddit pumping Dogecoin (DOGE) \u2014 the token surged more than 900% at the time and has been volatile throughout the year, rising to an all-time high price of $0.68 in May. <\/p>\n
Robinhood later reported 34% of its revenue from the first quarter of 2021 was directly attributable to transactions for the meme-based cryptocurrency, and claimed its business could be adversely affected “if the markets for Dogecoin deteriorate or if the price of Dogecoin declines.\u201d According to the trading app, 17% of its total revenue for the same period was derived from transaction-based revenues earned from all crypto transactions, with more than 9.5 million customers trading roughly $88 billion.<\/p>\n