Robinhood's cryptocurrency revenues fell 78% as the “dog token fever” faded in the crypto community. The numbers have declined since the highs reached in early 2021, driven by the soaring interest in Dogecoin.
Robinhood has shared data on the company's success in the third fiscal quarter of 2021 in its quarterly report. According to him, the company's revenues from digital currencies dipped to $51 million, which is significantly lower than the $233 million earned by the company in the second quarter of this year. But it is still ten times higher than the $5 million mark received in the third quarter of 2020. If we talk about operating revenue from trading in a new asset class from Q2 2020 to Q2 2021, it grew by 4282%.
Robinhood CFO Jason Warnick emphasized that in the third quarter of 2021, the focus of consumer attention shifted towards stocks instead of cryptocurrencies, in which platform users showed an active interest throughout almost the entire second quarter of this year. At the same time, the total profit of Robinhood in the third quarter amounted to about $365 million, having decreased from the level of $565 million. At the same time, the company's losses reached $1.37 billion. But this high figure is mainly due to the initial public offering of Robinhood shares.
Talking about the ups and downs of the company, Warnick said that more than one million users who signed up on the Robinhood cryptocurrency wallet waitlist were a bright spot in a very difficult quarter for the firm.
Customers, in turn, expect the company to further expand into the crypto industry and join the ranks of Coinbase's competitors. The most popular question among Robinhood users is why the process of listing new tokens is taking so long for the team. The second most popular request was to add a SHIB token by the end of 2021. Although recently the head of the company Vlad Tenev said that this is unlikely, referring to the complex mechanism for approving tokens for placement within the platform, which partially answers the first question.
During the publication of its financial results, the Robinhood team also recalled that one of the unique services not yet available from competitors is 24/7 customer support by phone, seven days a week.
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