Robinhood Crypto, the cryptocurrency trading arm of the popular investment platform Robinhood, has made a strategic move to expand its crypto offerings in Europe.
The company announced the launch of its first crypto-staking product, exclusively for European customers, allowing them to stake their Solana (SOL) holdings and earn rewards.
TLDR
- Robinhood Crypto has launched a Solana (SOL) staking product exclusively for European customers, allowing them to earn rewards by staking their SOL holdings.
- The platform is offering a 10% bonus in USDC on new users’ first month of crypto purchases, capped at 500 euros, to attract new customers.
- Robinhood Crypto has also introduced localized apps and educational modules for users in Italy, Poland, and Lithuania.
- The move comes as Robinhood faces increased regulatory scrutiny from the U.S. Securities and Exchange Commission (SEC), which has issued a Wells Notice indicating potential enforcement action against the company’s crypto arm.
- Solana’s (SOL) price surged above the crucial $150 level after the Robinhood announcement, with analysts suggesting a potential retest of the $200 mark previously reached in March.
The introduction of Solana staking comes at a time when Robinhood Crypto is facing increased regulatory scrutiny in the United States.
The U.S. Securities and Exchange Commission (SEC) recently issued a Wells Notice to the company, indicating the staff’s recommendation for an enforcement action against its crypto arm.
The SEC is investigating Robinhood’s cryptocurrency listings and crypto custodian operations for alleged securities violations.
Despite the challenges posed by regulatory uncertainty in the U.S., Robinhood Crypto is forging ahead with its European expansion.
The new Solana staking product enables customers to earn rewards by retaining their SOL holdings in their digital wallets.
By staking Solana, users contribute to securing and upholding the Solana blockchain network, and in return, they receive additional SOL tokens as rewards.
Robinhood Crypto’s Solana staking offering comes with a 5% yield at launch, which is competitive with other major crypto exchanges like Kraken and Binance, which advertise yields of up to 5% and 8%, respectively.
Just in: @RobinhoodCrypto EU now supports Solana staking, introducing their first-ever crypto staking product! 🔥
Learn more👇 https://t.co/aHXj1rgL8P
— Solana (@solana) May 15, 2024
It’s important to note that staking rewards can change over time due to various factors, including network inflation, the amount of SOL staked, validators’ commission rates, and market conditions.
In addition to the Solana staking product, Robinhood Crypto has rolled out a suite of new features specifically tailored for its European customers.
These include localized apps and educational modules for users in Italy, Poland, and Lithuania, covering popular cryptocurrencies like Bitcoin (BTC), USD Coin (USDC), and Avalanche (AVAX).
To attract new customers and guide them on their crypto investment journey, Robinhood Crypto is offering a 10% bonus in USDC on new users’ first month of crypto purchases, capped at 500 euros.
This rewards program aims to incentivize new users to explore the platform’s offerings and potentially expand its user base in Europe.
The launch of Robinhood Crypto’s European offerings has already had a positive impact on the Solana ecosystem. Following the announcement, Solana’s native token, SOL, experienced a significant rebound, surging from the $140 zone to its current trading price of around $153.
This price movement holds key significance for bullish investors, as they aim to retest the $200 mark previously surpassed in March.
According to crypto analyst Jesse Olson, Solana has shown strength in its recent price action, successfully hitting all four downside targets and exhibiting bullish divergence, followed by hitting three upside targets.
Olson notes that the price appears to form a higher low, increasing the probability of reaching “target four,” projected at the $175 mark.
However, SOL faces crucial resistance walls at $157 and $172, which are expected to be significant obstacles toward higher price levels.
The $140 line has served as a key support level for Solana’s price over the past week, and the bullish momentum remains uncertain as it strives to overcome these resistance levels and retest its yearly high of $209.
While Robinhood Crypto’s European expansion represents a strategic move to capitalize on the growing demand for crypto services in the region, the company’s future in the U.S. market remains uncertain.
