Robinhood Crypto Revenue Decreased As The DOGE Craze Calms Down

The Robinhood crypto revenue decreased by 78% as the DOGE craze slowed down as we are reading more today in our latest cryptocurrency news today.

The Robinhood crypto revenue fell to $51 million from $233 million last quarter because of DOGE. The company’s CFO pointed to more signups for the crypto wallet waitlist as the bright spot and the platform is discovering the downsides of the crypto market famous volatility. The company revealed in its Q3 earnings reports that the crypto revenue dropped to $51 million last quarter marking a 78% decline from its previous level of $233 million that it notched in the second quarter but still being up considerably from the $5 million that it earned back in 2020.

The decline was driven by the drop in demand for Dogecoin which exploded in popularity in the first half of the year and helped to propel the record sign-ups ad the platform. The CFO Jason Warnick said:

“In Q2, the story was about crypto, especially DOGE.”

Warnick added that the customers’ focus shifted more to the equities in the third quarter but overall the platform earned total revenues of $365 million in Q3 which is up from the same period a year ago but down from the $565 million that it posted last quarter. The company recorded a loss of $1.37 billion for Q3 as almost all of which stemmed from a one-time stock award tied to the initial public offering. Warnick added that the crypto market is idiosyncratic and added that the company intends to invest in crypto in the long run but it is impossible to make an accurate revenue forecast.

Warnick noted that more than 1 million customers signed up for Robinhood’s crypto wallet and these sign-ups came as a bright spot in what was otherwise a rough quarter for the platform that started trading as a public company earlier this year. In the meantime, the customers were pressing Robinhood which emerged as the rival to crypto exchange Coinbase on when it will add more coins. On a message board, the most popular question noted that Robinhood was slow in adding new tokens and asked if the company will add Shiba Inu by the end of the year. Warnick hinted that the wait could continue and cited an increase in regulatory scrutiny in the crypto space with the possibility that some tokens could be deemed to be securities. The platform also touted the addition of its 24/7 phone support and described itself as the first platform to offer such a service.