Bitcoin Bear Market Things: Robinhood’s Crypto Revenue Plunged by Almost 20% in Q2
The American investment platform Robinhood released its financial results for the second quarter, revealing that crypto trading revenue plunged by 18% compared to the Q1 figures.
One reason behind the downtrend could be the company’s decision to delist certain digital assets, deemed securities by the US SEC, such as Solana (SOL), Cardano (ADA), and Polygon (MATIC).
The Latest Numbers
Despite reporting solid overall profits in Q2, Robinhood announced that crypto trading revenue fell to $31 million. In comparison, that figure was $38 million in the first quarter of the year (which was still a slight decline from the sum registered in Q4, 2022).
The platform currently supports 15 digital currencies, including Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Bitcoin Cash (BCH), Shiba Inu (SHIB), and others. Its range was even wider two months ago when Solana (SOL), Polygon (MATIC), and Cardano (ADA) were also available for trading.
Nonetheless, the brokerage firm delisted those at the end of June following the SEC’s lawsuit against Coinbase, in which the agency named the aforementioned digital assets unregistered securities.
Contrary to the declining numbers, Robinhood’s CEO Vlad Tenev asserted that the company will remain an active investor in the cryptocurrency sector and will continue to provide digital asset services to customers:
“Our goal is to be the safest, most trusted place for customers to hold, trade, and transact with their crypto. We see our recent launches of Robinhood Wallet and Robinhood Connect resonating with customers, and we look forward to continuing to invest in crypto.”
Some of the Latest Setbacks
The crypto unit of the company has been struggling in the past year. It was slapped with a $30 million fine by the New York State Department of Financial Services (NYDFS) in August 2022 for allegedly violating anti-money laundering and cybersecurity regulations.
Despite witnessing rising crypto trading volumes at the start of 2023, those figures stalled in the following months, and Robinhood dismissed some of its employees in June.
“We’re ensuring operational excellence in how we work together on an ongoing basis. In some cases, this may mean teams make changes based on volume, workload,” the firm explained at the time.
Prior to that, Robinhood’s chief legal officer Dan Gallagher revealed that the entity weighed on its crypto offerings following the SEC’s crackdown on the sector.
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