Shine trader limited reports:
Robinhood, the Internet brokerage firm for the U.S. stock market, today announced its financial results for the third quarter of fiscal 2021. The data showed cryptocurrency revenue was just $51 million in the third quarter, with related transactions down from a high in the second quarter.
Robinhood’s shares fell as much as 8.77% to $36.10 after the results were announced, below its IPO price of $38. It dropped 53.47 percent from this year s high of 85 dollars.
Robinhood reported revenue of $365 million in the third quarter, below expectations of $4.239. $270 million year-over-year, up 35%; Compared with $565 million in the second quarter, it was 38.98% lower than the previous quarter.
Trading revenue reached $267 million, up 32% from $202 million in the third quarter of 2020. That was down 40 percent from the previous quarter, when trading revenue was $451 million in the second quarter.
In addition, revenue generated from cryptocurrency transactions was $51 million, down 79.68% from $233 million in the second quarter. Notably, the company’s second-quarter financial report showed that 64% of its cryptocurrency trading revenue came from Dogecoin.
“In the third quarter, cryptocurrency activity declined from historically high levels, resulting in fewer new financing accounts and lower revenues.” “Vlad Tenev, Robin Hood’s chief executive, said on an investor conference call. Looking back at the second quarter, we see a significant impact on cryptocurrencies. The huge interest, especially in Dogecoin, has led to a large number of new customers joining the platform and revenues reaching new highs.
Jpmorgan Chase (171.4,0.46,0.27%)
The analyst noted that while trading volumes remained strong in the third quarter, they were significantly lower than in the second quarter. “Dogecoin did not rebound in October compared to other cryptocurrencies.”
According to Kenneth Worthington’s analysis, trading volumes in the cryptocurrency industry fell by about 40% in the third quarter, but dogecoin was down by about 75%. This suggests that Robinhood’s cryptocurrency trading volume may have fallen even more than its peers in the cryptocurrency industry.
Robinhood plans to explore more in the cryptocurrency space.
Robinhood Crypto has opened its waiting list for cryptocurrency wallets, with more than 1 million people on the waiting list, according to financial reports.
In addition to the current hot DeFi and NFT markets, Christine Brown, coo of Robinhood Crypto, said in an interview with Decrypt that mortgages, loans and other de-central financial instruments are also under consideration, This will enable Robinhood Crypto to interact with Coinbase, Kraken, Binance and other cryptocurrencies. Currency exchanges are more similar.
“Let clients explore DeFi while trying to get them to participate in Robinhood’s commission-free deals.” According to Christine Brown, the platform can add non-functional transactions if there is demand from consumers.
Reprint indicated source：Spark Global Limited information