Robinhood Cryptocurrency Trading Profits Drop As Platform Avoids Memetoken Listings

Arman Shirinyan

One of the most popular retail trading platforms reports record losses

According to Robinhood trading platform’s earnings report, the company’s profits from cryptocurrency trading are dropped in the fourth quarter of 2021 and missed Wall Street expectations.

The drop totaled 6% from gains made during the meme coin and token frenzy that took place in November-October of the past year. The company has still gained 304% compared to the same period a year ago. But investors did not see the news positively, leading to the crash of the company’s stock in post-market trading.

The cryptocurrency trading offering has been an important part of Robinhood’s services, in addition to commission-free transactions. The strategy allowed the company to bring in a large number of new users, putting it on par with exchanges such as Coinbase Global.

During the second quarter of 2021, Robinhood’s digital asset trading revenues reached $233 million. The rapid rise was based on the skyrocketing growth of retail holdings in cryptocurrency assets such as Bitcoin and Ethereum.

Later, Tier-2 cryptocurrencies such as Dogecoin caught the attention of investors and brought in 40% of all crypto revenue.

Previously, numerous crypto influencers, the crypto community in general and the official team of one of the most popular meme tokens on the market, Shiba Inu, pressed Robinhood and asked for a listing of a token with about 1.2 million holders.

The platform’s CEO, Vlad Tenev, did not specifically mention SHIB when responding to the placement request, but shared with the community that SEC oversight is the sole reason behind the platform’s lengthy placement process of Shiba Inu.

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