Stock trading and crypto platform Robinhood underlined fading cryptocurrency revenue in the third quarter of 2022, though the results will do little to drain its ambition to serve the market.
The trading platform reported its third-quarter results on the 2nd of November, with the Robinhood executives suggesting a 12% quarter-on-quarter drop in Monthly Active Users (MAU) and a 24% quarter-on-quarter drop in conceptual volume as two of the major drivers behind a 12% slip in crypto revenue, acquiring $51 million.
In a results filing, the company attributed the downfall in active users and trading volume to customers continuing to navigate the volatile market environment.
Despite the situation, the company’s executives expressed that they would continue investing their resources into the crypto space, including rolling out permission for more cryptocurrencies, a new international retail-focused wallet, and NFT-related features on its forum.
Robinhood proceeded with the Beta of its Polygon-based Robinhood Web3 Wallet to 10,000 consumers on Sept. 27, with more than 1 million users on the waitlist. The company also integrated Circle’s USD Coin (USDC) stablecoin a day after.
During the conference call, Robinhood’s CEO Vladimir Tenev told the firm is preparing to offer the Robinhood Wallet to its global retail base in the months to come.
When questioned about the company’s plans for NFTs, Tenev communicated they will likely integrate a feature to view and custody NFTs in the near future. Regardless, connecting to NFT marketplaces didn’t seem to be on Tenev’s radar for the short term.
Tenev also noted that customers have asked for Robinhood to add more blockchains to increase the capacity of coins available for them to swap and trade.
While Tenev reported that several more coins were rolled out in Q3, he emphasized that Robinhood would not compromise on its idea to become the safest, most trusted cryptocurrency service provider and it hopes that customers understand and appreciate that they are moving carefully occasionally, but they want to be extremely deliberate and to help safeguard customers and their money.
Tenev also remarked that the company rolled out a free “Learn and Earn” cryptocurrency education program as a means to familiarize and retain a broader retail base over the long term.
As for Q4 2022, Robinhood’s articulated it will continue to make progress on its Robinhood Wallet, in addition to its Lightning Network integration.
Robinhood concluded the quarter with a net loss of $175 million despite its complete net revenue raising 14% to $361 million. While its adjusted EBITDA stood at $47 million. The company faces a net loss of $0.20 per share for Q3 2022 beat assessments.
Robinhood’s share price decreased 4.36% to $11.40 on Nov. 3, and is down 69.22% over the last 12 months, as per reports.
Hungry for more information?
NFT Calendar from NFTHi
Join us on Telegram!
NFTHI does not recommend any kind of Investment in NFTs or NFT trading. All the strategies are merely educational references.
Conduct thorough research before you start with NFTs