Often, the highest slots of the iPhone App Retailer are taken up by the acquainted icons of TikTok, Snapchat and Instagram, however not as we speak.
It’s the same image on the Google Play Store. Right here, Coinbase is sixth and Robinhood seventh, whereas the slots above are taken up with numerous free video games and video calling favourite Zoom.
To be clear, Sensor Tower’s rankings monitor momentum relatively than the whole quantity of downloads as a way to make the charts extra reactive to the app world’s movers and shakers. However even with this caveat, the leap for Robinhood and Coinbase is fairly astonishing, and displays the sudden enthusiasm for informal app-based funding that has gripped the web in current months.
Robinhood made waves again in January when it was the middle of the so referred to as “meme stock” boom that noticed the r/wallstreetbets subreddit driving shares in GameStop up from $17 to a excessive of $347.51. This briefly noticed Robinhood placing restrictions on the buying and selling of sure shares, which pushed many onto alternate options like Webull (73rd on Sensor Tower’s rankings).
On the time of writing, GameStop shares sit at a a lot decrease $154.69. However that is nonetheless 810% up on the preliminary worth. The curiosity now isn’t purely round GameStop, with sure r/wallstreetbets customers making an attempt to drive up the worth of the AMC theater chain, Mattress Tub and Past, and the beleaguered BlackBerry firm.
Coinbase is a little more simple: it’s a cryptocurrency buying and selling platform that goals to simplify the method of shopping for the likes of Bitcoin, Ethereum and Litecoin by internet hosting the person’s pockets onsite. With Bitcoin not too long ago hitting over $64,500 a coin, there’s no actual thriller as to the app’s reputation right here, though issues have dipped a little bit since that prime, and the forex sits just under $62,000 at the time of writing.
Whereas the 2 apps aren’t instantly associated, the truth that their sudden burst of recognition has come on the identical time possible isn’t a coincidence. Each permit inexperienced buyers to show a small amount of cash into one thing a lot bigger in a really quick period of time. For skilled buyers, this type of volatility is a pink flag, however current success tales in cryptocurrency and meme shares masks the massive threat of dropping all the pieces. The social media apps that normally occupy the highest slots, for all their faults, don’t carry that exact threat.
If you’re tempted to obtain Robinhood and Coinbase, our recommendation is obvious: solely make investments what you may afford to lose.