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62% of the crypto income of Robinhood’s Q2 was from Dogecoin trade

 Robinhood has shown popular retail apps to be 41% of its sales, with crypto trading growing in popularity on the platform.

The company generated $233 million from crypto-trading services over the quarter, up from $5 million for the whole of 2020, as reported by its second quarter of financial results published on August 18. During Q2 2021, more than 60% of Robinhood financed accounts traded digital assets.

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At the beginning of 2021, a total of 62 percent of Robinhood’s crypto revenue was derived from dogecoin trades. The speculative dog-token trade frenzy.

The profit report is Robinhood’s first report since it became a state-owned firm. “We are encouraged by the number of people that access the financial system for the first time via Robinhood,” said Vlad Teev, co-founder and CEO of Robinhood.

The total quarter’s turnover amounted to $565 million, up 131 percent from $244 million in Q2-2020. Each month, the monthly active users increased from 10.2 million to 21.3 million over the previous year, with funded accounts rising by 130% over the same period.

Robinhood’s assets also tripled ToYs value to 102 billion dollars.

Robinhood reported a total loss of $464 million for Q2, despite the increasing crypto-revenue. The losses are, however, a result of accounting adjustments to fluctuating corporate warrants and notes.

Observers are questioning whether there would be a trade boom caused by a pandemic following the annoyance of some Robinhood traders at trading restrictions earlier in this year and the reopening of the economy gives people more to do. Some have observed that the crypto business of Robinhood has many rivals.

“There’s too much competition in crypto trading, and Robinhood’s crypto-trading abilities aren’t a strong path to growth for its future,” said David Trainer, CHOO New Constructs, investment research firm, in an email ahead of Robinhood’s profits.

“Crypto dependency only increases risk and volatility of the HOOD business model,” he added in a follow-up email on Thursday.

However, Robinhood said that market turbulence was on its side even with the unpredictable price shifts of Bitcoin.

“The other thing we benefit from overtime is volatility,” said Jason Warnick, the CFO of Robinhood, during the Wednesday profit call.

“There have been a number of very significant market volatility moments, not only inequities, which are predominantly located in Q1, but also in the crypto, which is in Q2, and it’s unbelievably hard to predict when that moment will continue or happen again,” he said. “But Robinhood tends to have a bigger advantage, a really big tailwind when they happen.”

 

 

 

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