Robinhood, the inventory platform largely credited with bringing buying and selling to on a regular basis customers, has reported its fourth quarter earnings. What’s extra, there are many intriguing takeaways for crypto merchants as nicely.
Not “Robin” traders of drama
In its This autumn and full yr report, Robinhood recorded an increase in cryptocurrencies stating,
“Cryptocurrencies for the quarter elevated 304% to $48 million, in comparison with $12 million within the fourth quarter of 2020, and for the yr elevated to $419 million, in contrast with $27 million for the yr ended December 31, 2020.”
Earlier than traders escape the confetti, nonetheless, it’s essential to notice that Robinhood’s shares fell by over 12% after the buying and selling firm failed to satisfy the estimated targets for the ultimate quarter of 2021, in accordance with The Financial Times. Including to that, whole internet income in This autumn was $363 million, which was round $7 million below the target.
Moreover, Robinhood has estimated extra drops this quarter, with whole internet revenues probably coming under $340 million.
That mentioned, Robinhood is way from giving up on its foray into the crypto sector. In its earnings report, the corporate reminded readers of the launch of its crypto presents. In the meantime, the Robinhood crypto pockets is within the public beta stage, with a proper launch as a result of happen within the present quarter.
It’s official! Our #WalletsBeta program has begun 👛🎉 Now we have began rolling out crypto Wallets to 1,000 clients from the WenWallets waitlist, which continues to be open btw 👀👉 https://t.co/o1xzw1CF8W
— Christine (Corridor) Brown (@christine_hall) January 20, 2022
By March, 10,000 users are anticipated to be a part of Robinhood’s crypto pockets program. About upcoming options, the corporate’s weblog reported,
“Over the length of the Beta program, we are going to finalize the ship and obtain flows, add pleasant QR scanning experiences, enhance the transaction historical past interface, and add block explorer help to offer extra insights into their on-chain transactions.”
The folks need memes
One sticky space for the corporate has been its angle to the meme token Shiba Inu [SHIB]. Whereas Robinhood listed Dogecoin [DOGE] again in 2018, its reluctance to shortly listing SHIB has led to no small quantity of backlash from the Shiba loving neighborhood.
Specifically, analysts pointed to at least one particular issue that probably contributed to the autumn of Robinhood’s internet income: merchants losing interest in crypto and meme shares.
Previously, although, memes have introduced Robinhood to the courtroom. On 27 January, an American federal court docket dismissed a lawsuit which claimed that the brokerage platform broke legal guidelines when it set limits on meme inventory trades.
All mentioned and carried out, will Robinhood’s crypto income assist its progress this quarter? In these market circumstances, solely time can reveal the reply.
