The CEO of Robinhood, Vlad Tenev, has quite a bit to have a good time during this holiday. After just a few years after the IPO of Robinhood 2021 a time period, during which the shares of the commission-free trade app have decreased by greater than 90% After the trade has just restricted the 12-year-old company with some meme shares. Yahoo Finances “Comeback share” of the 12 months.
When asked about this award up to now few days, Tenev shone. “When we were a young company and just started, everyone was rooted for us,” said Tenev, who supervises around 2,500 employees at Robinhood. “Then we were treated as incumbent at some point … the mood became negative. [and] During Covid it was only strange. [We] Were like crazy, but people were unhappy and we reached our low point and now it was very positive. “
However, it’s what Tenev is basically passionate about the corner. Like many Fintech entrepreneurs, he could be very passionate about a second Trump government, because the deregulation appears to be a priority, along with a far warmer hug of the cryptocurrency.
It just isn’t surprising that he wants to make use of the rapidly changing landscape. In fact, we talked about it during our chats “explode“Job offers and about Crypto. We discussed CopytradingA trade strategy with which customers can routinely replicate the business of one other dealer. We have also talked about predictive markets during which Robinhood intended to compete with private startups resembling Kalshi And Polymarket This focuses exactly on the undeniable fact that people bet on the results of future events.
You can hear the entire thing Here; In the next you’ll discover extracts that discuss with predictive markets which were easily processed for the length.
I see that Each of 10 Americans [with brokerage accounts] Have a Robinhood account, but you simply have 1 / 4 percent of total retail assets within the United States. Can that be right?
I have not heard this statistics. I mean, it doesn’t sound crazy to me. There are trillions [of dollars] Assets [in the world]. Robinhood [AUM] Has about 200 billion US dollars, so now we have a good distance ahead of us. We are larger than firstly, but a few of these boys, just like the Schwabs and the loyalty, have 10 trillion dollars. So we still grow, but our assets grow by 40%in comparison with the previous 12 months and never by 2%to three%.
When we last personally, this was a much smaller company with ambitions to turn out to be a financial service giant. You have entered since then Asset management And Credit cards. I ponder about some newer financial mechanisms as predictive markets. How big is there a likelihood, do you’re thinking that?
I even have been a giant fan of predictive markets for a very long time, and it became clear to me relatively early that political contracts are the best product on this room because [politics] could be very up -to -date and severely correlated with the market performance, as useful as a hedge.
The only other thing was: everyone watches the polls and early results on the election night to search out out what is going on on and once you see the news, the image you paint could be very unclear, right? You do all this mathematics for you and tabular [votes]But they do not really tell them how the probabilities of 1 or the opposite candidate who win the selection. They contrast this with the predictive markets … and I feel what’s much more powerful, only distilled where things are currently based on the idea of all the data there may be. And that may be a very useful application, not necessarily for the prediction itself, but really for the news.
We didn’t think it was possible to begin [our own presidential election market] for this selection because there was the lawsuit with that [Commodity Futures Trading Commission, or CFTC]Then Kalshi prevalence In the eleventh hour [to offer contracts that pay off as bets on U.S. political elections]And the team mobilized. We put a whole lot of great people on it and now we have intended to begin in about two and a half weeks.
Have you ever talked to Kalshi about buying it?
I spoke to Kalshi, not concerning the purchase. In the tip we worked with forecast [a CFTC-registered designated contract market (DCM) for forecast contracts]. And that is a bit technical, but we’re an FCM, a merchant of the futures commission that is comparable to the customer-oriented a part of a futures or swapse dealer. Therefore, now we have to depend on an exchange to serve functionally to serve because the rear end of all of those business. And in the long run we used forecast because they’d all the license to do that. My understanding is that Kalshi can only offer it directly for retail and is unable to operate other FCMs.
I even have read that you simply stated that a change to sport could also happen in the shape of event contracts.
I feel that was taken a bit out of the context. Our focus is definitely on state -regulated event contracts and never on traditional sports betting. At the moment, event contracts don’t allow sports results [but] That could change.
You know there will likely be a brand new CFTC commissioner [and] Many persons are excited about sports that enter the nationwide area. I feel these products would look very different from traditional sports betting. But yes, our focus is on event contracts. I feel it’ll be a giant deal. The presidential election market has proven that the sort of products gives great demand for products. We had traded greater than half a billion contracts in about every week [by more than] Half one million people. And so I feel that the primary we heard afterwards was: can now we have more contracts? Can this be a more capable product and never only for the selection?
Obviously, sport could be huge and continuously. What other forms of contracts do you imagine?
There are many options. A natural fit for Robinhood is economical. You can see some examples of a Fed hike, a Fed decline … Everything that’s on the interface of reports and financial markets is interesting for us. In my opinion, News has increasingly began to merge with entertainment.
There are two ways to take a look at [event contracts]. One is an lively trader assets that lively retailers wish to act alongside options and futures and other things. But the opposite is a passive experience during which event contracts, if you happen to only want the news, generally is a approach to deliver this to you in real time. We also give it some thought and I feel that opens up a wider variety of options. You can have event contracts to just about every little thing, from Oscars and entertainment events to sports to politics. And the categories of event contracts are almost just like the sections of a newspaper, right? Art, style, leisure, sports, sports, business, [the] Title page that’s real time. So you possibly can imagine that the digital equivalent of a newspaper is delivered via event contracts.
