Robinhood is currently struggling in slowing down a massive reduction in the value of its shares. The value is decreasing continuously and has dropped by 70% lower than its all-time high value recorded in August 2021.
Robinhood was originally formed as a financial service provider company. However, it also initiated trading services for the general public interest in retail trading. With the passage of time, it also introduced cryptocurrency trading at its trading platform. Crypto trading then became a cherry on top for Robinhood and millions of crypto traders are now members of Robinhood.
This year, Q2 financial statements of Robinhood revealed that the company’s crypto earnings were top-notch. The revenue collection against crypto trading during these six months was more than US$ 233 Million. However, the Dogecoin trading revenue in this US$ 233 Million accounted for approximately 62%. If the overall revenue collection of Robinhood is compared with Dogecoin revenues, then again Dogecoin’s revenue accounted for 41% against entire revenues.
So the way forward for Robinhood is crystal clear which is that the company should focus more on crypto trading.
At presently, however, Robinhood is facing a great challenge that involves the value of its shares. The share value of Robinhood was boosted in the month of August when it reached a value of US$ 70.39 per share. This was by far the highest share value Robinhood had ever seen. From their onwards, the decrease in share value started to take place. As of now, the share value has dropped by 70% from the ATH value recorded in August this year. The reduction has caused the decline of US$ 26 and resultantly the present market value of Robinhood’s single share is US$ 38.
The effects of share value decrease became visible upon Robinhood’s crypto trading earnings. For the third quarter of 2021, there was a considerable decline in crypto trade volume at Robinhood which went as low as 79%. Resultantly, the crypto trading revenues too sank and, as a consequence, the entire revenue collection went down to a level of 19%.
Chris MacDonald at TipRanks commented that Robinhood must realize that crypto trading is the best option for it. Long-term success for Robinhood can come only when the trading company will focus on crypto trading. It has to divert its attention from becoming the world’s “most used” trading platform.
At present, Robinhood has more than 1.5 million registered digital currency traders awaiting the launch of Robinhood’s digital wallet. There were also members of the public who demanded that Robinhood should support the Shiba Inu coin (SHIB). These persons proceeded to lodge an online petition asking Robinhood to fulfill their demands pertaining to SHIB’s integration. Meanwhile, Kraken has integrated SHIB, and instantly SHIB’s price rose to 30%. Maybe if Robinhood does the same, it can bring about the change it needs.
