What happened: Robinhood said the decline in cryptocurrency activity “resulted in fewer new funded accounts and lower revenue compared to the second quarter.”
Part of this decrease is due to a decrease in demand for Dogecoin (CRYPTO: DOGE), which hit a record high of $ 0.74 in the first half of the year. The coin itself has fallen 64.99% from those levels. At time of printing, it was trading down 2.06% on a 24-hour basis to $ 0.26.
“In the second quarter, the story was about crypto, specifically DOGE,” Jason Warnick, CFO of Robinhood, said on a call with reporters, adding that the focus has been on stocks over the course of the year. last quarter, Decrypt reported. Warnick said the cryptocurrency market was “idiosyncratic.”
Robinhood’s cryptocurrency revenue fell to $ 51 million in the third quarter from $ 233 million in the previous quarter, down 78%.
The company reported a loss per share of $ 2.06, missing an estimate of Street’s loss per share of $ 1.36.
Robinhood shares fell 8.47% in after-hours trading on Tuesday to $ 36.22 after ending the regular session up 1.44% to $ 39.57.
See also: How to buy Dogecoin (DOGE)
Why is this important: Even though Robinhood saw its cryptocurrency revenue decline quarter over quarter, those numbers grew 860% year over year.
The trading platform noted that the waiting list for its cryptocurrency wallets now exceeds 1 million. “This quarter was about developing more products and services for our customers, including crypto wallets,” said Vlad Tenev, CEO of Robinhood.
Robinhood stressed that it builds its portfolios in “public” and that it “collects critical customer feedback and uses a new multi-factor authentication verification app to ensure a secure and reliable experience.”
The date of the Robinhood wallet remains uncertain, but beta testing was announced last month and the company has been seen testing several new features. Meanwhile, some cryptocurrency enthusiasts are asking if Robinhood would list Shiba Inu.
The wait for Shiba Inu or some other coin to be listed on Robinhood may be longer, according to Warnick, who cited increased regulatory scrutiny of the segment as a factor, Decrypt reported.
Photo: Courtesy of Robinhood