Robinhood, a major online trading brokerage that also offers crypto trading has recently shared its earnings for the third quarter.
Robinhood’s $51 Million Crypto Revenue
The mobile application-based trading brokerage reported that for the third quarter, its revenue from cryptocurrencies was worth $51 million.
As per the officials, their revenue has continued declining in the cryptocurrency space. In the second quarter, the cryptocurrency revenue they generated was worth $58 million.
According to the month-over-month report, Robinhood’s data has dipped by 12%.
Robinhood is Constantly Taking a Hood
It was in the month of August when the teams at Robinhood confirmed that they were forced to slash their workforce.
It was revealed that they had to slash 23% of their total staff which translated to 780 employees. As communicated by the company, it was their cost-cutting attempt.
Apart from the revenue, the company continues to record a constant decline in its users. The monthly active users (MAUs) on the platform have been declining, which is another alarming thing for Robinhood.
Earlier this year, Robinhood announced that it was facing huge downfalls in terms of its earnings and revenues. Therefore, the company had to cut down on its employees.
The first downsizing that the officials at Robinhood carried out was 9%.
Huge Decline in MAU
As per the statistics, Robinhood’s MAUs in the first quarter was at 15.9 million. In the second quarter, the number reportedly dropped to 14 million MAUs and in the third quarter, it fell to 12.1 million MAUs.
The situation has been extremely difficult for Robinhood as it is constantly witnessing a great fall in its earnings plus the MAUs.
The company built a strong user base in the crypto segment due to Dogecoin (DOGE). In mid-2021, the DOGE was at its peak hitting all-time highs and having a very high market valuation.
The people of the United States were so much into DOGE that they kept joining Robinhood and continued investing. Unfortunately, the bullish trend for DOGE was not permanent and it ended up plunging.
Then Came the Year 2022
DOGE entered the year 2022 with quite the struggle and things became even worse in that particular year. The entire crypto industry took a major fall and since then, the industry has not fully recovered.
With the cryptocurrency market and DOGE not having much to offer, cryptocurrency users in the US have continued withdrawing.
In the meanwhile, Robinhood had built a strong team to manage the growing crypto business. However, as things went south, Robinhood has continued laying off employees to cut costs.
Although Robinhood has been trying to increase its revenue generation by expanding out of the US, it can’t be said what the future of the company would be.
The constant decline on the Robinhood platform means that there is a constant decline in the crypto industry. This is something that is not good for the crypto industry at all.