EToro

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eToro
EToro.png
Founded 2007
Headquarters Bney Brak, Israel
Key People Yoni Assia, CEO and co-founder
Products Social cryptocurrency trading platform
Twitter @etoro
LinkedIn Profile
Facebook Page
Website EToro Home
Blog EToro Blog

With offices in London, Cyprus, Israel, and Hoboken, New Jersey, EToro is a 'social investment network' that combines trading currencies, commodities, indices and equities as well as cryptocurrencies with social networking features. "Social" trading or investing entails trading platform customers allowing others customers to view their transactions in order for them to replicate others' successful trading strategies.[1]

Products and Services

Digital Asset Trading

eToro offers trading to U.S. residents in bitcoin, Bitcoin Cash, Ethereum, Ripple, Dash, Litecoin, Ethereum Classic, Cardano, IOTA, Stellar, EOS, NEO, ZEC and, as of October 30, 2018, Binance Coins (BNB).[2] Tweeting, "Much good boy! Such happy!" in the spirit of the shiba inu meme cryptocurrency, eToro listed Dogecoin on May 3, 2021.[3] U.S. residents can access trading only on eToro's cryptocurrency markets.[4]

The listing of BNB drew attention from observers who noted that, unlike other cryptocurrencies listed on eToro, BNB would likely be considered a security token for purposes of regulation by U.K. and other financial market regulators.[5]

Market data

eToro also collects and publishes market data, which is regularly cited in news outlets like Forbes, CNBC, Finance Magnates, Bloomberg, and Fortune.[6]

According to a survey conducted by eToro's U.S. division in January 2019, there is significant demand for greater education for digital assets - how to trade them, store them, and how they work. The survey found that 69 percent of all respondents said they were interested in learning more about digital assets, including 97 percent of the millennial and gen-x respondents. 75 percent of respondents reported that they were not knowledgeable about digital assets - 20 percent of those who reported this way also reported that they were holders of digital assets.[7]

In August 2019, the London Economic reported that according to data from eToro, there is evidence showing that retail investors open more gold and bitcoin positions whenever news broke of escalation in the trade war between the United States and China. Because gold is often treated as a store of value in times of geopolitical and global economic instability, they said, these data indicate that retail investors are seeing bitcoin more and more as a similar store of value. U.K. eToro analyst Simon Peters said that this may be because bitcoin shares similar characteristics to gold - "there will only ever be a finite amount in existence (21 million), it’s decentralised, its price is not affected by inflation and it has the added benefit over gold of lower storage costs.” Peters said that three factors are impeding mainstream acceptance of bitcoin as a more solid hedging tool: price volatility, alleged market manipulation, and the vulnerability of cryptocurrency trading platforms, as well as individual holders of digital assets, to hacking attacks.[8][9]

Staking

EToro supports staking for multiple digital assets. Staking is the practice by which the owner of a digital asset that is based on a proof-of-stake consensus mechanism delegates their voting rights into "staking pools." The more digital assets are in a pool, the higher the chance that the pool will produce a block on the digital asset's blockchain, conferring the rewards for doing so to everyone who has vested a stake into the pool.[10]

In October 2020, eToro announced it would launch staking services with no fees later that month. The first digital assets to be supported, according to the announcement, were ADA and TRON.[11]

Company History

EToro launched its first full version of social trading on CopyTrader, one of its trading platforms, on June 27, 2011.[12] A key feature was its OpenBook network, which let users see what trades other users were making and how they were ranked. Within certain account-based limits, customers could copy trades made by successful traders. According to eToro co-founder Yoni Assia, OpenBook provided customers with a way to learn about currency trading and the eToro platform.[13] Before that, eToro offered a social aspect to its currency trading by encouraging its members to share information and opinions about market movements through a private online chat platform.[14]

In January 2014, eToro launched trading in cryptocurrencies, limited to contracts for difference on bitcoin.

In March 2019, eToro released a statement saying that it would acquire the research and development team of Danish blockchain firm Firmo in order to "accelerate growth of tokenized financial assets."[15]

Key People

References

  1. eToro Launches Bitcoin Trading For 3 Million Users. Coindesk.
  2. Cryptocurrencies. eToro.
  3. @eToro. Twitter.
  4. Cryptocurrencies. eToro.
  5. eToro’s recent listing looks like a security, but the firm isn’t worried about regulators. The Block.
  6. In The News. eToro.
  7. eToro Survey Finds Huge Demand for Cryptocurrency Education. Finance Magnates.
  8. US-China Trade War Driving Retail Investors to Bitcoin, Says EToro. Cointelegraph.
  9. Retail investors increase gold & Bitcoin positions as US/China trade war escalates. The London Economic.
  10. What is Staking?. eToro.
  11. eToro to Offer Staking Rewards for Holders of TRON and Cardano. Coindesk.
  12. eToro Launches Copy.Me Platform That Lets Everyone Market Their Trading Skills. Finovate.
  13. Social investment platform eToro: Israel’s most widespread export?. Times of Israel.
  14. Social Media: The Next Major Forex Player?. The Next Web.
  15. Trading Platform EToro to Buy Danish Blockchain Company Firmo. Bloomberg.