I woke up to great news this morning! I was approved to trade on Robinhood’s new cryptocurrency exchange. Finally! An app where I can trade stocks and crypto in one single convenient place. This is what we’ve all been waiting for.
Coinbase has made us all look at the exchange community very grimly. The customer service, the Bitcoin Cash launch, and the smug responses to Ripple’s listing on their exchange. Robinhood is a very needed competitor in this national arena. However, that competitor turned out to be wolf that we’ve now let inside.
I joyfully initiated a deposit into their exchange, and I was allotted $1k in credit to trade on the app. I went to the crypto trading exchange and bought 1 ETH. After the trade went through, there was a small problem. There was no button for deposits or withdrawals. I looked around the app for another 10 minutes, and still couldn’t find the functionality. I figured they were still building it into the exchange so I emailed support. Here the response I got:
Shortly after I confirmed with this reddit post: https://www.reddit.com/r/Bitcoin/comments/7wzv53/keep_in_mind_you_cannot_withdraw_or_send_bitcoin/
The Reddit forum is saying they are not actually selling you ETH or BTC either, they are selling you a number tied to the price of BTC. This is called snake oil. In their support response to me they said this is to prevent illegal activity, which is a shot at crypto in general and an obvious excuse.
Currently, they have no intentions of allowing withdrawals and will let me know if they do. Which they wont. Because they buy treasury certificates with your money, and don’t want it leaving the exchange. Thats how they get away with their “zero fees” marketing.
This type of company’s business is a bad name for all of cryptocurrency, especially as this is the pioneering effort to combine equities and digital currency. We know one thing here at Crypto Leak…we are staying away.