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In its Q3 2022 results, Robinhood highlighted that revenue from crypto assets was lagging. However, the CEO says that this will not dampen the company’s ambition to serve the market.
On November 2, the trading platform announced its third-quarter results, with Robinhood executives attributing a 12 percent decline in monthly active users (MAU), calculated quarter-over-quarter, and a 24 percent quarter-over-quarter decline in nominal volume to 12. percent drop in crypto revenue, reaching $51 million.
In its earnings filing for the quarter, the company attributed the decline in active users and trading volume to “customers continuing to navigate the volatile market environment.”
Despite these concerns, the company’s executives said they would continue to invest in the crypto space, a new international retail-focused wallet and new features related to NFTs on the platform.
Robinhood rolled out a beta version of its Polygon-based Web3 wallet to 10,000 users on September 27, with more than one million people on the waiting list. The company also launched an integration with Circle’s USD Coin (USDC) stablecoin a day later.
During a conference call with investors, Robinhood CEO Vladimir Tenev said the company plans to roll out the Robinhood wallet for the international retail base in the coming months.
When asked about Robinhood’s plans regarding non-fungible tokens (NFTs), the company’s head of product development, David Tenev, said the company will likely include a feature to view and store NFTs soon. However, the company seems interested in something other than connecting NFT to the marketplaces.
The executive also stated, “customers have asked Robinhood to add more blockchains to increase the breadth of coins available for them to exchange and trade.”
He emphasized that Robinhood would not compromise on becoming “the safest and most reliable” service company for cryptoassets. “We hope that customers understand and appreciate that we are moving carefully […] Sometimes that means going a little slower than many of these other crypto companies. But we want to be extremely aware and help protect our customers and their money.”
Tenev also noted that the company rolled out a free crypto-asset education program to retain a broader retail base for the long term.
Robinhood Inc., the online brokerage, reported a net loss of $175 million for the third quarter of fiscal 2018. The company’s total revenue increased 14 percent to $361 million, and adjusted earnings before interest, depreciation, taxes, and amortization (EBITDA) were $47 million.
The author is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash
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