Cryptocurrency trading revenue experienced a 39% decline, falling to $54 million in Q1, largely due to a decrease in interest surrounding meme stocks and a continued downturn in the cryptocurrency market. Criptochipy.com suggests that Robinhood’s lack of a compelling product is a key factor contributing to these disappointing results.
In addition to the revenue declines, a broader downturn in sales had a slightly negative impact on Robinhood’s net cumulative funded account balances, which fell by 27 to 22.8 million. On a positive note, the total assets under custody (AUC) saw a 15% increase, reaching $93 billion. This slight growth in AUC can largely be attributed to the increase in their user base, with further growth expected in the coming months despite macroeconomic challenges.
Recent Major Developments
Robinhood has taken a significant step toward enhancing its crypto market presence. On April 4, the company launched crypto wallets for all of its two million customers who were waiting to receive cryptocurrencies. The roll-out was completed smoothly, with no issues reported.
According to Robinhood, the introduction of their cash card, cryptocurrency wallets, and the promotion of new coins on the platform signals strong progress in their internal operations strategy. The company stated that a variety of new services and products are set to be launched, which they believe will greatly benefit their users – Vlad Tenev, Co-Founder and CEO of Robinhood Markets.
Additionally, Robinhood began offering Stock Lending to select customers. This feature allows users to earn more revenue from the stocks they already own, helping them put their investments to work and adding a new source of passive income to their portfolios.
To improve customer service, Robinhood has also extended its operational hours for more advanced users. This move is a step toward offering 24/7 trading, reflecting the company’s commitment to addressing the needs of its more sophisticated users.
Furthermore, Robinhood added four new cryptocurrencies to its platform based on customer demand, bringing the total number of supported coins to 45. While this expansion is a positive move, it still lags behind many other exchanges on CryptoChipy. With such a limited selection, Robinhood does not meet CryptoChipy’ standards for a major exchange. For a better alternative with lower fees and a broader selection, consider trying KuCoin.
New Coins Added to Robinhood
Robinhood introduced the following new coins to its platform:
- Съединение (COMP): A token based on Ethereum that allows the community to govern the Compound protocol, which features decentralized interest rate markets for issuing and borrowing ETH at varying rates.
- Многоъгълник (MATIC): A top 20 cryptocurrency by market capitalization, with a market cap exceeding $10 billion. It is currently trading around $1.40 per token.
- Солана (SOL): A flexible cryptocurrency and platform for running decentralized apps, capable of processing approximately 50,000 transactions per second, compared to Ethereum’s 15 or fewer.
- Шиба Ину (SHIB): A meme coin that saw a drop of over 60% from its peak in October 2021. Despite this, Wallet Investor analysts suggest that SHIB may show bullish signals for 2022 and potentially reach its previous all-time high.
Robinhood to Incorporate Lightning Network
Robinhood is exploring the integration of a Layer-2 Bitcoin payment protocol, called the Lightning Network, to enhance transaction speed and reduce fees. The Lightning Network works by creating payment channels between users, enabling small transactions to occur without broadcasting them to the entire Bitcoin network.
Robinhood stated that once fully integrated, the Lightning Network will enable faster and more affordable Bitcoin remittances globally, helping the company expand internationally at minimal cost.
Ziglu Acquisition Update
In April 2022, Robinhood reached an agreement to acquire Ziglu, a UK-based e-money and crypto company. This acquisition is part of Robinhood’s strategy to expand its presence in the UK and European markets. Robinhood plans to leverage Ziglu’s expertise and team to accelerate its growth in these regions.
