SOCIAL trading and multi-asset brokerage company eToro has its focus on financial and copy trading services. It is also known for its interest in cryptocurrencies, most notably Bitcoin.
As of March 2020, eToro has a total of 13 million registered accounts and it is one of the biggest companies, if not the biggest, in the industry.
Recently, eToro has been headlining news from all around the world due to the fact that the company’s value was stated to be at more than $2 billion. This is a huge leap forward, considering the fact that in late 2018, its value was about $800 million. Here’s a closer look at eToro’s deals and how it managed to reach this level of success in just two years.
How did eToro triple its value?
While there are many factors included as to how eToro managed to triple its value from 2018 to 2020, these are the most important ones. First off, the company has grown its community and focuses heavily on social trading. The community now has more than 10 million uses and the interactions between the members are seamless. Thanks to its great effort in the community, eToro has utilized social media better than any other Retail FX broker.
The one factor that had the biggest role in its success is the fact that they trade with cryptocurrencies. It was in 2014 when eToro added cryptocurrencies to the company’s stock selection. In 2018, eToro acknowledged the potential that cryptocurrencies have. This is why it added crypto wallets for both Android and iOS users. Then, it entered the US market by offering 10 cryptocurrencies: Bitcoin Litecoin, Ethereum, Dash, Bitcoin Cash, XRP, Stellar, NEO, EOS and Ethereum Classic.
As shown in the news, cryptocurrenices are now the main topic as their price is reaching record-breaking value, especially for Bitcoin and Ethereum. Thanks to their surge in value, eToro managed to keep climbing the ladder and reach a value of over $2 billion.
The philanthropy of the company also played a major part as it launched GoodDollar, an open-source, non-profit community project which aims to reduce the global wealth inequality through UBI, using blockchain technology.
One thing that people need to remember is that eToro has had a successful run long before it started dealing with cryptocurrencies. Many of its users can attest to how well-reputable the company is, as stated in this eToro review. It contains a lot of valuable information that can help one get to know the company better from a practical point of view.
To rewind things back to the beginning, eToro was founded in 2007 in Tel Aviv by two brothers–Yoni and Ronen Assia and David Ring. In 2010, they launched their social investment platform along with its CopyTrading feature. This platform enabled investors to view, follow and copy the top traders of the network automatically. It was also in 2010 when this company launched its first Android app.
The year 2014 was a massive one for eToro because the company managed to raise about $27 million from Chinese and Russian investors. In April of the same year, eToro added 130 British and German stocks. As mentioned earlier, 2014 was also the year when it incorporated cryptocurrencies as investment instruments.
With the company on the rise, eToro focused on marketing and expansion. In 2018, the company announced sponsorship deals with seven UK football teams–Tottenham, Brighton and Hove Albion, Crystal Palace, Cardiff City, Leicester City, Southampton and Newcastle. It also sponsored various actors and other sports leagues.
The marketing and the company’s deals were a huge success. That is why eToro is now valued at over $2 billion, operates globally and has offices in Cyprus, the UK, the USA, Australia and Israel.
It has been stated that cryptocurrencies were one of the biggest factors that sky-rocketed the value of eToro. Many people ask why cryptocurrencies are used so much. The answer is this: cryptocurrencies such as Bitcoin are focused on the users and their needs, rather than on banks and governments. They allow people to escape extra and added fees, the transactions are instant and they provide the users with a certain level of anonymity, increasing their security. People can also mine them and make huge profits—what Bitcoin is most famous for. Recently, Bitcoin even broke the 2017 record and topped $20,000 in value.
All of these features are the advantages that cryptocurrencies have over the Fiat currencies, and are also why millions of people and companies around the world use them. SPONSORED CONTENT