Robinhood Share Crashes 10% After Huge Crypto Revenue Drop

Shares of popular trading app Robinhood have crashed hard. This was caused by the company’s crypto revenues dropping 78% in the past quarter.

A big setback for Robinhood

The company unveiled Tuesday in its earnings report for the third quarter that crypto revenue fell to $51 million in the quarter, which is a 78% drop from the $233 million it made in the second quarter.

The decline was in large part caused by a drop in demand for Dogecoin, which fueled a massive growth in registrations on the Robinhood platform in the first half of the year.

“In the second quarter everyone traded in crypto, especially DOGE”. In the third quarter, however, our clients’ focus has shifted to equities, CFO Jason Warnick said in an interview with reporters.

Overall, Robinhood had total revenue of $365 million in the third quarter, up from the same period a year ago. However, sales were $200 million lower than the $565 million recorded in the previous quarter. This poor result caused Robinhood stock to crash more than 8%.

Is Robinhood going to add SHIB?

As crypto activity declined, Robinhood’s CEO said he was optimistic about the company’s long-term prospects for cryptocurrencies. For example, he informed that more than a million people have already signed up for the Robinhood crypto wallets waiting list.

Robinhood’s monthly active users also fell from 21.3 million in the second quarter to 18.9 million last quarter. However, Robinhood’s user base could grow again in Q4 as the platform may add the Shiba Inu (SHIB) token. Perhaps adding another meme token could boost the company’s crypto revenues again.

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