Robinhood, the stock and crypto trading platform in the US that has been loved and hated in equal measure, has announced a Si=ummer Giveaway Sweepstakes which would give $500 to each of the 200 winners.
The platform, which has built a sort of a cult following which has helped it to grow into a huge multi-billion dollar company over the last few years, has also said that the users need not even use their account to participate in the giveaway. All that the users will have to do is to open an account, get approved and link their bank account and they will become eligible for the giveaway. Likewise, the user can also refer his friends who can then get approved and link their bank account and for everyone (up to a max of 10) who does this, the referrer will get one entry into the giveaway.
This is the new promotional campaign that has been launched by the company and it has been clear from the start of the company that its focus has always been on the retail traders. Though the institutional traders are also signing up with the platform, it is the smaller traders who form the base of the company and the platform has been favoring them and indulging them much more than any of the other stock trading platforms out there. They have been given a share of the Robinhood IPO and the promotional campaigns are also pretty simple ones that are focussed on the retail traders and all this makes them feel very close and attached to the platform.
This campaign has been launched a few weeks after the launch of its multi-billion IP which generated mixed results and it comes just a few days after the declaration of its second-quarter results which showed that the retail crowd in the platform currently favors the crypto instruments a great deal. It has also shown that the trading volumes in the platform have been steadily rising over the past few months which have been helped immensely by the crypto volumes and the associated volatility in the markets. But the company had also warned about headwinds in the coming quarter that could affect its revenues. It remains to be seen how it is going to tackle the various questions around its regulations and also its liquidity which has come under stress during times of high volatility.