widely used trading software On Tuesday, November 7, Robinhood made the announcement that it will be looking to expand into Europe in the upcoming weeks. The company also intends to establish its brokerage activities in the United Kingdom.
The Crypto Volumes Slide for Robinhood
The commission-free trading app revealed a revenue miss in its third-quarter results, which were released on Tuesday, November 7. According to Robinhood, the platform’s reduced cryptocurrency volumes were the cause of the decline in its transaction-based income.
The business reported $467 million in net revenue, which was less than the $478.9 million average analyst projection. That being said, this number was 29% higher than it was during the same time last year. As stated by Robinhood in a statement on Tuesday, transaction-based revenues fell by 11% year over year to $185 million. This decline was mainly caused by a 55% decline in crypto notional volumes over the course of the year.
Tuesday’s after-market hours saw a startling 8% decline in the price of Robinhood stock (NASDAQ: HOOD).
Growing in the Crypto World
Even though its volume of cryptocurrency trades has slowed, Robinhood still intends to grow in the future. Earlier this month, Robinhood announced that it intends to bring its services to the state of Nevada. It also declared support for Shiba Inu (SHIB), a memecoin.
According to its website, users can trade a variety of cryptocurrencies with Robinhood, such as Dogecoin, Ethereum, Bitcoin, and Shiba Inu tokens. The company, which primarily serves small traders, witnessed a spike in interest in cryptocurrency investments during the pandemic.
However, because of a number of significant problems, this enthusiasm has been waning. Three tokens—Solana, Cardano, and Polygon—were removed from Robinhood’s cryptocurrency trading platform in June, the company announced. This move came after a widely reported regulatory crackdown on some of the cryptocurrency industry’s largest exchanges.