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(Engadget)   The company that wouldn't let users sell stock they owned wants you to deposit your cryptocurrency with them   (engadget.com) divider line
    More: Interesting, Blog, Authentication, Affiliate marketing, Two-factor authentication, cryptocurrency wallet, Security token, testing period, waiting list Robinhood  
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1035 clicks; posted to Business » on 21 Jan 2022 at 11:17 PM (18 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



13 Comments     (+0 »)
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2022-01-21 8:47:47 PM  
I look forward to the inevitable hilarity.
 
2022-01-21 11:51:31 PM  
Robinhood sucks. What's new?
 
2022-01-21 11:53:49 PM  
Not quite really an investment company wants you to invest in not quite an investment.
 
2022-01-21 11:59:19 PM  
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2022-01-22 12:01:28 AM  
They added a way to trade cryptomacguffins multiple years before they implemented accessible wallets that let anyone withdraw their moonbucks as moonbucks. For once I'm not even talking shiat about the Ryanair of brokers; just stating the sequence of events.

Mostly because we still haven't seen any headlines about a few million in moonbucks getting siphoned off to float around the cryptosphere, so I can't really bring myself to criticize them for their handling of imaginary Pokemon cards yet.
 
2022-01-22 12:23:29 AM  
"Owned"?
 
2022-01-22 1:30:46 AM  
i am honestly amazed that none of these trading companies have created a thing where they hold the coins and idiots buy and trade some kind of futures or derivatives of the coins they are holding as their own investment instruments.  we can't be far off that point now.  its getting to that level of stupid.
 
2022-01-22 1:45:04 AM  

oopsboom: i am honestly amazed that none of these trading companies have created a thing where they hold the coins and idiots buy and trade some kind of futures or derivatives of the coins they are holding as their own investment instruments.  we can't be far off that point now.  its getting to that level of stupid.


That ship sailed years ago.

/Now I'm just waiting for a coin that tracks an ETN that inversely tracks some horribly-tangled crypto-VIX.
 
2022-01-22 2:44:48 AM  
What's up Chuck? Who's Robbin?
 
2022-01-22 3:51:56 AM  

oopsboom: i am honestly amazed that none of these trading companies have created a thing where they hold the coins and idiots buy and trade some kind of futures or derivatives of the coins they are holding as their own investment instruments.  we can't be far off that point now.  its getting to that level of stupid.


This is absurdist. The absurd thing about it is that it would be perfectly ok IF it were done by an institution that was properly capitalized, with rules and agreements. I know that sounds crazy, but Lloyds of London will take just about any bet for a price. It takes its cut and everyone knows what the deal is going in. I would be perfectly fine with that. No problem whatsoever.

But that would mean that Lloyds would have experts check it out, run the numbers, find the loopholes, and cover all the angles. And that has not been done, not nearly, with any crypto. The crypto guys get ripped off daily it seems, and there is abundant sketch. All the bros who claim they understand it entirely miss the big picture the more they study their minutiae.

And let's be clear. Lloyds would do it only for a HUGE FEE. Why? There are no fundamentals. No accountability. No transparency (a priori, certainly, even if there is ex post transparency). I don't think other responsible actors would touch it with a pole. You can quantify and indemnify high seas piracy and Betty Grable's legs, but who knows how many trillions could disappear in 10 seconds with crypto?
 
2022-01-22 3:59:14 AM  
Futures and options. Hmm. Well, Mr El Salvador has tried to get ... what... I guess convertible bondish kinds of financing going for a city of the future. Investors would get half of their investment back in bitcoin on a certain day, at a certain strike price for conversion? Or something?

I could imagine that somebody might want to purchase such a bond and then hedge that bitcoin coupon value by making a forward contract to deliver the amount of the coupon in bitcoin OR in dollars, or with a bitcoin dollar swap at some future date. And of course the value of those contracts will fluctuate along with the various rates.

So demand already exists. A thin market probably already exists. And it will be volatile as hell because the whole payout comes on some future date, not a little at a time.
 
2022-01-22 4:07:22 AM  
I welcome this move by Robinhood. Know why? Because this is it folks. This is the beginning of the end. When you know you have to find the least sophisticated investors to keep your scheme going, then you hit the widows and orphans and the dreamers and the 12 year olds with a big allowance. And Robinhood's got em. In droves.

Fractional shares. Fractional coin. It is a bucket shop and there is a guy in your phone taking your coins, winking at you and saying, "OK man. Don't worry. When you need your money it will be here. Honest." His hat is on sideways and he is wearing one of those silk letter jackets.

The number one best scenario for a crash? Well, there is a slim chance that Robinhood is taking all these funds and "not really investing them," but instead just holding it all in an e-vault somewhere. There is a slim chance that they know what suckers their customers are and are betting against them or hedging against them, or playing them. If that is happening, then they will have funds to pay off all the lawsuits that come when this market tanks.
 
2022-01-22 5:56:27 PM  
They only take a wee percent.
 
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