Robinhood, a cryptocurrency and stock trading platform, reported weak crypto revenues in the third quarter of 2022. However, the results will do little to damper the company’s goal to service the market, according to its CEO Vlad Tenev.
On Nov. 2, the trading platform revealed its third-quarter results, reporting a 12% loss in Monthly Active Users (MAU) and a 24% drop in notional volume. Furthermore, there has been a 12% drop in crypto revenue, which is now at $51 million.
Popular trading app Robinhood announced on Tuesday that it is downsizing and firing 780 people, or around 23% of its full-time employees, due to a drop in transactions and persistent losses. This isn’t the first time. Earlier this year, Robinhood cut off around 9% of its employees.
As reported by the company, Robinhood’s MAUs decreased to 12.1 million in the third quarter from 14 million in the second quarter and 15.9 million in the first quarter. aMAUs for the business had reached their highest point of 21.3 million in the second quarter of 2021.
Robinhood released the Web3 Wallet Beta for 10,000 Users. In an interview with a crypto news publication, Johann Kerbrat claimed that the wallet would enable users to trade over 20 cryptocurrencies supported by DEX aggregator 0x without incurring any costs. Users can connect with dapps using wallets, which also makes it easier to earn interest on digital assets.
According to Tenev, the Web3 wallet received interest from over a million users prior to its formal launch in August. He intends to launch the product globally and is excited about it.
As per the tweet, USDC is now available to Robinhood users due to collaboration. Users may now buy/sell USDC on Robinhood crypto, as well as transfer, spend, and swap USDC on the new Robinhood Wallet.
Robinhood posted a net loss of $175 million for the third quarter that ended on September 30. A loss of 20 cents per share after adjustments, beating the average analyst estimate of 31 cents per share. FactSet estimates $361 million in revenue, slightly shy of the $362 million expert expectation.
The company’s stock increased 2.6% in late trade. The value of the shares has decreased by around 34% so far this year.
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