By
Godfrey Benjamin
April 26th, 2024
With its recent listing of cryptocurrencies, Robinhood has come under the radar of regulators.
Popular US-based trading platform Robinhood announced that it has listed Cardano (ADA) among the list of its crypto offering. Robinhood decided to add Cardano after having significant demand from its customers.
Cardano (ADA) is currently the eighth-largest cryptocurrency with a market cap of $15 billion. Despite Cardano (ADA) making its way to Robinhood, the market had a lukewarm response. As of press time, ADA is trading at a price of $0.45 with a market cap of $15.6 billion.
The listing of Cardano’s ADA on Robinhood comes as it has been preparing for the much-awaited Vasil upgrade. As per the recent updates, one of Cardano’s developers stated that they have touched important milestones. The Twitter thread published by Cardano parent Input Output reads:
“Over 80% of SPOs have upgraded and more than 70% of the top DApps we’re tracking have confirmed successful pre-production testing”.
It further added that 75% of the mainnet blocks for the final release candidates had been created.
The developer also stated that they were helping crypto exchanges to facilitate the integration. As per the announcement, ”at least 27 exchanges [are] in the process of integrating, 5 of which are in the top 10 for liquidity. The #Vasil upgrade is the most significant to date for #Cardano, and our focus remains on doing this correctly, in a manner which is safe and secure”.
Robinhood and Its Trouble with Crypto
With its recent listing of cryptocurrencies, Robinhood has come under the radar of regulators. Last month, the New York State Department of Financial Services slapped a $30 million penalty on the crypto division of Robinhood.
The penalty comes on the charges that Robinhood had inadequately staffed its Crypto’s anti-money laundering and cybersecurity program. NYDFS also stated that the company didn’t have sufficient resources to address risks.
The New York regulator also stated that Robinhood failed to conduct a timely transition from a manual transaction monitoring system to a more efficient one despite its growing user base.
Earlier in July, banking giant JPMorgan said that Robinhood was facing some dilution risk. In a note to clients, JPMorgan research analyst Kenneth Worthington said:
“Coinbase and Robinhood, like their tech-company peers, issue substantial equity to company employees allowing companies to both attract and incentivize employees while keeping cash compensation lower.”
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