Robinhood Crypto Revenue Declines 78 Percent in Q3 2021

Popular fee-less trading platform Robinhood saw a massive falloff in crypto revenue in the third quarter of 2021, marking a 78 percent decline over second-quarter numbers. Robinhood earned a revenue of $51 million (roughly Rs. 382 crores) in Q3, compared to the $233 million (roughly Rs. 1,745 crores) it raked in last quarter. The exchange attributed this massive dip to a decline in the price of Dogecoin, the meme-based cryptocurrency whose explosion in popularity earlier in the year helped shoot up customer sign-up numbers.

The price of Dogecoin had skyrocketed by 900 percent in less than a month in May 2021 to reach an all-time high of $0.7376 (roughly Rs. 55.33). In the months that followed, prices have receded drastically, hovering around the $0.20 (roughly Rs. 15) mark over the past few weeks. Dogecoin (DOGE) accounted for 62 percent of Robinhood’s total digital asset trading revenue in the second quarter of the year so DOGE’s popular dip certainly played a part in Robinhood’s diminished third-quarter revenue.

Robinhood earned $365 million (roughly Rs. 2,738 crore) overall in the quarter, down from the $565 million (roughly Rs. 4,238 crore) it earned last quarter, but higher still than its Q3 earnings last year. On a year-to-year basis, total net revenues are up 35 percent in the third quarter, and crypto transaction revenues are up 860 percent compared with the same period in 2020. Adding to the positives, company spokespeople said that more than 1 million people had already joined the waitlist for the company’s upcoming crypto wallet.

According to Robinhood, its business has been impacted by factors including market volatility, retail trading behaviour, and unanticipated market events that may continue to be the case in the next quarter. Shares of Robinhood, which made its trading debut in July, fell about 8.4 percent to $36.25 (roughly Rs. 2,719) in after-hours trading, sliding below its initial public offering price of $38 (roughly Rs. 2,850) a share.


Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

For all the latest Technology News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! TechNewsBoy.com is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.