In a recent interview, Nansen CEO Alex Svanevik said Robinhood most likely won't issue a token because doing so could undercut the value of its stock, HOOD. While some in the market had speculated that the brokerage might launch an ecosystem token similar to certain crypto projects, Svanevik indicated the company is now more inclined to treat blockchain as a technical infrastructure layer. He pointed out that Robinhood's Layer 2 network is already built on Ethereum and uses a gas token for network fees, so an extra platform token would be redundant. The real goal of its blockchain push is to strengthen product capabilities, not to raise capital or construct a new token economy. (Cointelegraph)
Nansen CEO Alex Svanevik said in a recent interview that Robinhood probably won’t launch a token, because it could end up competing with its publicly traded stock, HOOD.
People in the market had been speculating that Robinhood might copy certain crypto projects and issue an ecosystem token. But that now looks less likely. The company seems more inclined to use blockchain as a behind-the-scenes technology tool instead of building the business around a token.
Svanevik said Robinhood’s existing Layer 2 network already operates on the Ethereum ecosystem and already has a gas token for paying network fees, so an extra platform token isn’t needed. Pretty simple. The main point of Robinhood’s blockchain infrastructure work is to improve product capabilities, not to raise funds or spin up a new economic model through token issuance. (Cointelegraph)
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