Robinhood embraces copy trading after warning competitors about regulatory risks

What a difference made by the changing organizational environment.

About nine months after the suggestion that the young copy trading platform can only work because it flew “under the radar” for the organizers, Robinhood announced that it has entered space with “Robinhood Social”, a new feature that allows users to follow and repeat the trading of prominent investors manually.

This step represents a great interface for online mediation, which was historically cautious about the features that could attract organizational scrutiny. The company abandoned its celebration digital sweets feature before the subscription in 2021 after the organizers raised concerns about pre -trading, which makes its embrace of copying, which is another possible feature, all noticeable.

This caution was fully shown in December, when Vlad Teenv, CEO of Robinhood, CEO of Robinhood, suggested that such platforms can work primarily because of their smaller size “, as she proposed” relatively smaller copies “to become” transcription trading more interested in organizers “and that it may not be in the first place because of” enlarged glass “because of their size” The relatively younger. “

Now, Robinhood is betting that the organizational scene has changed enough to enter the copy trading market safely.

This timing is particularly noticeable given the pointed criticism that Robenol faced earlier this year from the 23 -year -old DUB founder, Stephen Wang, who put his platform as a more focused on educational traditional trading applications.

“I have a lot of respect for what [CEO] Vilify [Tenev] Wang told me in February.

Wang has constantly argued that the DUB-which includes risk degrees, modified returns by risk, and portfolio stability measures-is a safer alternative to platforms like Robinhood. Speaking to Techcrunch, Wang was also criticizing Robenol’s decision to present Mimi currencies like Trump, saying that the incentives “are not calculated between these large platforms that are public companies that now need to earn money.”

Tuesday news, which was announced at the Robinhood event earlier in the day, brought to mind the possibility that Robinhood, in fact, has acquired four -year -old Dub, which was officially launched last year, and has so far collected $ 47 million of financing from investors. But it was reached for the comment, a Robinhood spokesman answered by email, “No, this is not a acquisition, we are building our own platform in Robinhood.” The request for suspension from Wang has not been returned by the journalism time.

The Robinhood version of copy trade is differently different from platforms such as DUB and players in applied such as Etoro, which has offered copying for American users for years through its Copytrader feature. Although EToro allows automatic copying for other merchant governor in actual time (where users are limited to copying other American traders only due to regulations), DUB allows users to automatically copy full portfolio for $ 10, and Robinhood Social will require users to repeat a manually repeat, and a discrimination that may help in treating organizational concerns.

The platform, which was launched early next year, will be verified and displayed and displayed the activities of famous investors and members of congress. Unlike the unofficial copy circulation that occurs on social media, Robinhood will require identification and proof of actual wallet sites. The plan, according to the company, is first inviting 10,000 Robinhood to test the service before it is launch on a larger scale.

The launch comes at a time when the organizational scene is developing quickly. The encryption companies have been widely examined under the Biden Administration, while many encryption companies have publicly circulated companies in recent months, as they have reduced their way to Trump’s friendly encoding position. Meanwhile, copy circulation – commonly common in Europe but is very restricted in the United States – may gain recent acceptance.

Through this lens, the entry of the Robinhood in the circulation of copies is more than just launching another feature; It can indicate the opening of the flood gates for a wave of new platforms. If Robinhood is able to successfully negotiate the legal scene that extends the trading of limited copies for a long time in the United States, it is possible to follow its example. EToro, the successful EToro company, which raised $ 310 million and has witnessed shares rising by 29 % on its appearance for the first time, showed a strong appetite for investors for copy trading platforms.

Whether this potential wave is good or bad news for retailers – or it will often enhance Fintech’s assessments – is an open question. Currently, Robinhood contributors may be the clearest winners.