The only thing should be good for is for anyone who is dumb enough to still be holding coins on Robinhood to get them off of Robinhood as soon as is physically possible. Robinhood have a long and very widely known history of screwing over their users in every possibly way in order to make more profits for themselves and their hedge fund buddies.

Good move, but I don't think I will ever like Robinhood or even sign up to use it, especially when they decided to do the unthinkable after the Gamestop incident where they decided to block retail traders from trading certain assets while it was business usual for hedge funds and institutional investors.
They are capable of doing the same thing again.

Most of Robinhood's customers have their money in cash, stocks, and options. These securities are insured by the SPIC (and FDIC for cash) up to certain limits. I don't think this is the case for any crypto holdings, and it is difficult for most companies to properly insure crypto they hold on behalf of their customers.

Robinhood offering customers the ability to withdraw their crypto is likely part of a strategy for them to increase their userbase.

I don't see any centralized exchange ever doing this. Requiring customers to withdraw their coin will lead to higher costs in the form of transaction fees, and will likely result in transaction fees increasing if the exchange is large enough.

Allowing customers to keep their coin on an exchange will also make their account more "sticky" as their customers will have to do more to move their money elsewhere. Further, allowing customers to keep their money on an exchange makes it easier for their customers to trade, which leads to both more liquidity, and to higher trading fees.

There are just too many incentives for Robinhood, or any other exchange to implement something similar to what you propose.

Using LN can be considered an incentive already, lesser fee is a huge difference. Binance might not adopt LN as long as they are on the top, they may not need it until another exchange surpassed them which they would need to compete against. Having their own node means they could still collect from  users, it will still be an advantage for the centralize exchanges.

Afaik Yobit is already using LN, ofc not in a million that we'd use the exchange. I was just mentioning it because I monitor channels every day and read some announcement  from time to time.

I do agree, from a business perspective i.e only thinking about profits rather than customers security, it makes sense to have a web wallet on your platform. Although, I do believe this is where Bitcoin should be the outlier, we've gone through all this work to assure that people are free to hold their own money, and be responsible for it, why would we then want to encourage the same capitalistic ideals, that corrupts traditional fiat companies?

I hate the fact that a lot of companies pretend that they're looking after your best interest, and the annoying part this does actually convince a lot of their users. However, while they might appear to trying to improve their services for the user it's all about how much profit they earn. Having a web wallet, is probably fundamental to their success as a platform unfortunately.
 
Good point. See, to me an exchange which did that would have much more credibility than any other service out there that didn't, and to be honest credibility, and therefore trust should be at the top of their agenda. Although, obviously profits cloud their judgement, but I'll be quite honest I care far less about how well an exchange is doing, than user security. Something which exchanges should be caring about, but the truth of the matter is they don't, they only care whether they're storing that Bitcoin on their platform. They likely do measure the amount of Bitcoin stored on their platform, and they likely have internal meetings about how they can improve/increase the amount stored on their platform, as it probably directly correlates with profit.

The core of the problem is that people put their money above their principles, which makes them lose both.

The ideal benefit of bitcoin is that you're free of monetary oppression. That, besides self-custody, you're using something whose supply is programmed, which means safe from any arbitrary monetary policy, and that it's completely transparent and therefore honest towards you. However, it's not easy to get the picture if you've done the opposite your entire life.

The current capitalism relies on greed and the ignorance of the mob; that's why most don't understand the way money works and even worse: Don't care to find out. Which brings us to the second, non-ideal benefit of bitcoin, profit. Lots of people want to abuse the existence of the ideal benefit, to make money. They will portray themselves as cognizant of something innovative they, yet, haven't fully understood themselves, to serve their broken system's ideals.

And that's also the reason we have thousands of altcoins which are gradually forgotten. We've solved the double-spending problem and got rid of trust. Yet, some constantly try to create different mechanisms, which supposedly "work better", to favor mostly themselves financially.

If people had acknowledged the importance of self-custody, transparency and privacy, we'd have hardly any alt, the impact from centralized exchanges would be minimal and the title of this thread would be a joke.

to my knowledge, they did have a record to block trades they deem to be "risky" and even sold clients' shares without prior warning, for example, GameStop. that precedent alone proves they can control what clients can do, let alone if you can transfer out your shares (or cryptos) at all.

I think I pulled a muscle laughing.
Yeah the Pinto was a great deal for consumers, or the Firestone tires failing or killing people.
The manufacturers knew the product was not in the 'best interest of customers' but selling them made a higher profit.
Cigarettes, foods with know carcinogens and so on.

Companies will offer what makes them the biggest profit.
Consumers will usually buy what appears to get them the best deal for the money.

The same applies to financial products too. Be it stocks & bonds or crypto or whatever.

-Dave