Robinhood, a popular retailer trading app has recently revealed in a financial report that crypto trading has significantly grown popular on the platform. The trading company states that 41% of its revenues was due to crypto trading, particularly the meme-inspired cryptocurrency Dogecoin.
The company’s financial reports, published on August 18, revealed the results of the second quarter. According to the financial reports, the firm generated $223 million revenue just from crypto trading services, a significant rise in the firm’s $5 million revenue generated in the entirety of 2020. More than 60% of accounts on the platform were trading digital assets in the second quarter of 2021, around the same time when the meme-inspired cryptocurrency Dogecoin was at the height of its popularity.
A significant portion of the firm’s crypto revenue is due to Dogecoin traders. The company witnessed the speculative Dogecoin trading frenzy in the second quarter of the year, making up 65% of the firm’s overall crypto revenue for the second quarter. The financial reports clearly indicate that a significant portion of the firm’s crypto earnings was due to meme-inspired cryptocurrency traders.
The co-founder and chief executive of Robinhood, Vlad Teev, commented on the firm’s success, stating that Robinhood’s success is pushed forward by the growing number of people that are accessing the financial system for the first time through the trading platform. The firm’s executives are motivated by the number of people signing up for trading digital assets on the platform.
The financial report of the second quarter marks the first time Robinhood released its earnings report since it became a public company after making its debut on NASDAQ. While the debut of Robinhood was marked as one of the worst initial public offerings, the crypto surge shown in the financial reports implies that Robinhood is soaring.
The total revenue for the company was shown to be at $565 for the second quarter, a 131% increase compared to the revenue report for the second quarter in 20202. Monthly active users have doubled, and funded accounts increased by 130%.
In contrast to the surging crypto revenue, the retail trading platform has reported incurring a loss of $464 million for the second quarter overall. The reports indicate that the losses incurred are due to the accounting adjustments made to the fluctuating warrants and notes held by the trading company.