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On November 7, Tuesday, Robinhood, one of the leading cryptocurrency exchanges in the world, made an announcement. The announcement emphasized the company’s desire to expand into Europe in the coming days. Additionally, the company aims to start brokerage activities in the United Kingdom.
Robinhood’s Crypto Volumes Decline
Robinhood, known for its commission-free trading app, announced its third-quarter report on November 7, Tuesday, reporting a revenue loss. Robinhood highlighted the decline in trading volumes on the platform, stating that it was responsible for the decrease in revenue from transactions.
The company achieved a net revenue of $467 million, falling short of the estimated average of $478.9 million. Interestingly, this figure represents a 29% increase compared to the same period of the previous year.
In the announcement made by Robinhood, attention was drawn to the decline in transaction-based revenues. It was stated that the revenue decreased by 11% compared to the previous year, amounting to $185 million, and the cause was attributed to the 55% decrease in crypto nominal volumes during the year. Following the announcement, Robinhood’s stock (NASDAQ: HOOD) also experienced a significant drop of 8% on Tuesday.
Expansion in the Crypto Space
Despite the declines, Robinhood does not seem to be backing down. The company appears to have the intention of expanding in the crypto world in the future. Last month, Robinhood made a similar announcement, stating its plans to expand its services to the state of Nevada. In addition, it also announced its support for Shiba Inu (SHIB), one of the leading memecoins.
Robinhood allows trading in various leading cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, and Shiba Inu tokens, on its website. The company, which was previously on the radar of small investors, has seen an increase in interest in crypto and investment along with the pandemic.
However, there have also been some developments that have contributed to the decrease in this interest. In June, Robinhood came under pressure from regulators. Following the SEC’s scrutiny of Binance and Coinbase, which are considered to be the largest in terms of volume, Robinhood announced its decision to delist Solana, Cardano, and Polygon to avoid potential troubles.
