Pressure Mounts for Robinhood to List the SHIB Crypto as Kraken Takes the Plunge


Yesterday, Kraken became the latest exchange to allow trading of the Shiba Inu (CCC:SHIB-USD) crypto after announcing its plans earlier this month. Now, the pressure is on Robinhood (NASDAQ:HOOD) to follow suit.

A close-up shot of a Shiba Inu dog.

Source: Shutterstock

It’s pretty clear that users of Robinhood are in favor of a SHIB crypto listing. In fact, a petition in favor of Robinhood listing Shiba Inu has over 500,000 signatures at the time of writing. A member of the Shiba Army, the fan base of SHIB, created the petition.

Additionally, shares of Robinhood are down 34% since the company debuted publicly in late July. A potential listing of SHIB could help boost revenue as trading in other cryptocurrencies slows down.

On the bright side, a recent lawsuit filed against Robinhood and Citadel Securities was just dismissed. Citadel works with Robinhood as a market maker. The two parties operate under a payment-for-order-flow model, which means that Robinhood routes trades to Citadel. In return, Citadel pays Robinhood a pre-set fee for each trade. The lawsuit alleged that Robinhood and Citadel colluded to halt a short squeeze on GameStop (NYSE:GME), AMC Entertainment (NYSE:AMC), and six other stocks to help funds that were trapped short. Earlier this month, a judge ruled that there wasn’t sufficient evidence to pinpoint collusion between Robinhood and Citadel.

This positive ruling could help Robinhood clear its busy plate and focus on other tasks, such as listing SHIB.

Why a SHIB Crypto Listing Makes Sense for Robinhood

Robinhood already allows trading in several altcoins, such as Dogecoin (CCC:DOGE-USD), Litecoin (CCC:LTC-USD) and XRP (CCC:XRP-USD). This makes sense, as the millennial-fueled brokerage boasts over 22 million active users.

And at the same time, SHIB continues to grow. Earlier this month, Shiba Inu reached the milestone of 1 million wallet holders. This just goes to show that momentum around the dog-themed crypto is extremely high, and that a listing on Robinhood could benefit both parties. Additionally, Shiba Inu is currently the 12th-largest cryptocurrency by market capitalization, clocking in at $25.9 billion.

While Shiba Inu remains a largely speculative altcoin with limited uses, the crypto is riding on a large wave of momentum that Robinhood should take advantage of.

On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Article printed from InvestorPlace Media,

©2023 InvestorPlace Media, LLC