Although the Q3's report from Robinhood (NASDAQ: HOOD) revealed a decline in sales, the company claims this has little impact on its plans for the future with regard to digital assets.
Investors should be concerned after the brokerage firm reported a 12% quarterly decline in monthly active users and a 24% decline in notional volume. With a 12% decline in Q3, digital asset revenues, a sector in which Robinhood had experienced some success, fell short of projections.
The company attributed the dropping volumes and drop in active users to the consumers' exposure to market volatility, but remained optimistic about its aspirations for digital assets. Future ambitions for Robinhood include expanding its digital wallet to include users from other countries and supporting a wider variety of virtual currencies on the site.
The company expanded its exclusive list of assets in Q3, but CEO Vladimir Tenev stressed that Robinhood would not stray from its mission to be the most dependable service provider in the industry. Tenev said:
“We hope that customers understand and appreciate that we’re moving carefully. Sometimes, that means moving a little bit slower than a lot of these other crypto companies. But we want to be extremely deliberate and to help protect customers and their money.”
Vlad also said that as the year comes to a close, developing Lightning Network integrations was a top focus for Robinhood. A program has been launched that gives users the chance to gain tokens as a reward while they learn the fundamentals of virtual currencies.
The company's stock suffered after the release of the financial report, dropping by 4.36% to trade at $11.40. An examination of the share price over an 11-month period reveals a decline of 69%, a trend that worries investors.
In the Midst of the "Crypto Winter," Robinhood Continues Its Building Phase
Businesses have adopted a cautious approach to developing new projects in the industry as a result of the decline in asset prices. The CEO of Robinhood, however, says despite the bleak outlook that “this is the best time to build.”
Because they are not distracted by the commotion of rallies, he continued, the most prosperous businesses in the sector were established during bear runs. So, Tenev explained:
“So when everyone says, oh crypto is over, that was fun while it lasted, people put their heads down, and they build, and they build these great products, and that’s what we’re excited to do.”
