In its latest earnings release, Robinhood, the crypto-friendly online trading platform, revealed a significant 18% decline in crypto trading revenue during the second quarter. The revenues dropped from $38 million in the previous quarter to $31 million, constituting 16% of the total trading revenue.
Robinhood Crypto Trading Revenue Drops by 18% in Recent Earnings Report
However, the impact was not limited to crypto trading alone. Overall transaction-based revenues also experienced a decrease of 7%, amounting to $193 million. Options revenues registered a loss of 5%, reaching $127 million, and equities saw a decline of 7%, settling at $25 million.
This drop in crypto trading revenue aligns with the challenges faced by the broader crypto market, which has been affected by various events such as the Terra implosion, the FTX collapse, and ongoing regulatory issues in the United States.
In addition to the revenue decline, Robinhood discontinued support for several tokens in June due to their identification as securities in the SEC lawsuits against crypto exchanges Binance and Coinbase. Tokens affected included Cardano (ADA), Polygon (MATIC), and Solana (SOL).
Despite these challenges, Robinhood still offers trading for 15 different cryptocurrencies, including popular ones like Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), and Avalanche (AVAX). The company also maintained $11.5 million in crypto under custody, matching the amount held at the end of the first quarter.
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