TL; DR
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Robinhood opened trading to all 50 US states, so we now have an app with ~23 million funded users, with a clear intent to invest, who now have a trusted, low-friction way to invest in crypto.
Full story
That’s right, Robinhood just opened crypto trading on its app to all 50 US states (plus Puerto Rico and the US Virgin Islands).
We know, we know – total snooze-fest!
But there is insight to be found here…
You know that ‘Round up for a good cause?’ prompts you see in the supermarket?
In 2016, it was used in only 16% of charity campaigns. In 2022, 67% of all major charities used it, and that year those ~5-10c round-up donations raised $749 million dollars!
They work so well because:
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They take technology/processes that consumers already have terribly familiar with (electronic payment in stores)
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Communicate with them at the point of their ‘peak intention’ (the intention is: to pay for something)
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They reduce friction and make the decision easy by asking a small question (donation of 1-99c)
Robinhood is now hitting the same marks for retail crypto investors across the US.
Because this is what it’s all about:
Most retail investors use Robinhood to invest (because it’s easy to use and has no fees). When they use the app, their intention is usually to find opportunities and invest.
So now we have an app with roughly 23 million funded users, with a clear intent to invest, who now have a trusted way to invest in crypto with little friction.
(No new interface to learn, no basic sentences to write, no Googling ‘what is a crypto wallet and why do I need one?’).