Citing Dogecoin, Cryptocurrency App Robinhood Says Its Income More likely to Drop

    Robinhood, the net brokerage agency that rode the cryptocurrency bull-run earlier this yr, mentioned it expects its quarterly income to dip. In a submitting at the USA Securities and Change Fee (SEC) on Monday, the corporate reported that its buying and selling exercise for the primary two months of this yr, when main cryptocurrencies like Bitcoin and Dogecoin had a dream run, was “particularly high”, nevertheless it dropped by the tip of the second quarter of 2021. It mentioned it anticipated the buying and selling exercise to drop additional.

    Practically 17 p.c of its complete income within the first quarter of this yr was from crypto transactions, in contrast with 4 p.c within the earlier quarter, in response to the filings. As well as, 34 p.c of this quarterly income was straight due to a spike in Dogecoin value and buying and selling quantity. Dogecoin, which has been backed by billionaire entrepreneur Elon Musk on social media, gained a large value surge to achieve an all-time excessive of $0.68 (roughly Rs. 50) on Could 6 earlier than dropping most of it in a cryptocurrency market crash. Robinhood mentioned its enterprise might be hit if the markets for the cryptocurrency “deteriorate or if the price of Dogecoin declines” with no comparable demand for different tokens on the app.

    The agency reported year-on-year income development of greater than 123 p.c, from $244 million (roughly Rs. 18,236 crores) on the finish of the second quarter of 2020 to an anticipated $546-$574 million (roughly Rs. 40,803 crores-Rs. 42,896 crores) on June 30. The expansion was pushed partly attributable to “increased trading activity related to options and cryptocurrencies” the corporate mentioned in an modification to its Type S-1 filed with the SEC.

    The submitting comes because the buying and selling app is getting ready to go public on Nasdaq. It initially mentioned it deliberate to lift $100 million (roughly Rs. 7,473 crore) on debut, however the newest submitting suggests a extra conservative providing.

    Robinhood can be going through scrutiny from US regulators. Final month, it was penalised with a $70 million (roughly Rs. 5,230 crore) wonderful for inflicting hurt to hundreds of customers.

    Keen on cryptocurrency? We focus on all issues crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Devices 360 podcast. Orbital is offered on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

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