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Robinhood Welcomes Bitcoin and Dogecoin to its Crypto Wallet

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Robinhood Markets Inc., the prominent US fintech firm, has taken a bold step in the world of cryptocurrency by introducing support for Bitcoin [BTC] and Dogecoin [DOGE] within its digital wallet. This move signifies a significant expansion of its wallet’s capabilities, going beyond its initial focus on the Ethereum ecosystem.

With this addition, Robinhood’s crypto wallet now allows all users to send and receive both BTC and DOGE, as highlighted in a recent company statement. Earlier, the platform’s offering was limited to handling Ether, similar to Metamask. The platform’s crypto wallet has gained tremendous traction after just six months of its launch, commanding a user base of hundreds of thousands spanning across 140 countries.

Therefore, the inclusion of two of the most well-known cryptocurrencies into its fold is a a strategic move in a bid to attract more customers who desire more diverse range of assets across various blockchain networks

Furthermore, Robinhood is incorporating another layer of versatility by introducing swap features for a select group of users. Demonstrating the platform’s commitment to offering comprehensive crypto services, this feature facilitates the trading of Ether for more than 200 different assets. Interestingly, the wallet is also engineered to accommodate gas fees, the costs associated with Ethereum transactions, which can now be paid in any token held by the user, rather than being limited to Ether alone.

While these advancements are already underway, the broader user base can look forward to gaining access to the swap feature in the coming weeks, as announced by Robinhood. As the company continues to evolve its crypto wallet, the financial technology industry is witnessing an innovative leap that aims to make diverse cryptocurrency transactions more accessible and seamless than ever before.

The development comes amid a tough time for the firm, whose earnings from cryptocurrency transactions have plunged by 18% in the second quarter, according to a recent report. This reduction can be attributed partly to a decrease in the number of customers engaging in trade.

Robinhood’s Q2 Report

The earnings report highlights a drop in revenue related to crypto activities to $31 million, down from the $38 million reported in the previous quarter. Additionally, there’s a noted 6% reduction in the number of customers participating in trading, along with a 15% decrease in notional volumes per trader.

Despite these obstacles, Robinhood remains resolute in its commitment to enhance its foothold within the cryptocurrency sector. The company is set to launch a non-custodial wallet later this year, a feature aimed at empowering customers by affording them greater authority over their crypto assets.

Robinhood’s Crypto Cash Wanes, Trade Reins in Gains

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The most recent earnings report from Robinhood reveals a significant decline in revenue derived from cryptocurrency transactions. The California-based company experienced an 18% drop in this revenue during the second quarter. This reduction can be attributed partly to a decrease in the number of customers engaging in trades.

The earnings report highlights that revenue connected to crypto activities decreased to $31 million, marking a decline from the $38 million reported in the previous quarter. Additionally, it is noted that there was a 6% decrease in the number of customers involved in trading and a 15% decline in notional volumes per trader.

Despite these challenges, Robinhood remains committed to strengthening its presence within the cryptocurrency industry. The company plans to introduce a non-custodial wallet later in the year. This forthcoming feature will empower customers by granting them greater control over their crypto assets.

The firm acknowledged the tough circumstances faced by the broader digital asset ecosystem, but emphasized its ongoing efforts to advance in this space. The statement from Robinhood underscores the company’s resilience in the face of adversity and its determination to continue evolving in the cryptocurrency domain.

GAAP Milestone: Robinhood’s Profitability in Crypto

Earlier in June, Robinhood had reported a substantial 43% drop in crypto trading volume for May in comparison to April. Moreover, May’s trading volume witnessed a staggering 68% decline compared to the same period the previous year.

Despite the challenges faced, Robinhood’s total net revenues experienced a positive uptick. The figures showed a 10% increase from the first quarter of the current year. Notably, the company also achieved a noteworthy milestone by attaining GAAP profitability for the first time since becoming a public entity. Net income rose to $25 million in the second quarter, as stated by Vlad Tenev, the CEO and co-founder of Robinhood Markets. Tenev expressed that this achievement reflects their commitment to innovation and growth, aiming to enhance customer experiences, expand assets, capture market share, and drive positive transformation within the industry.

In conclusion, Robinhood’s latest earnings report illustrates a decline in revenue generated from cryptocurrency transactions, attributed in part to reduced customer engagement. Nonetheless, the company remains resilient, with plans to introduce a non-custodial wallet and a commitment to innovation despite the challenging crypto landscape. The report also highlights Robinhood’s increased net revenues and its significant step towards GAAP profitability.

$4B Dogecoin On The Move: Robinhood Hikes Its Reserves

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The trading volume of Dogecoin, the original meme cryptocurrency, increased by almost 20% over the past day, while at the same time, two anonymous wallets exchanged staggering sums of Dogecoin, amounting to several billion DOGE. After it was revealed over the weekend that the Robinhood trading app had expanded its DOGE stockpile by around 11%, these enormous funds were transferred.

Whale Alert, a well-known blockchain site that monitors significant cryptocurrency transfers, has discovered two enormous transactions that each carried two billion DOGE, 1,958,943,330 and 2,076,945,575 meme coins.

These were the corresponding amounts in US dollars of $126,443,671 and $134,060,347, respectively. The transfers were carried out through wallets identified by Whale Alert as anonymous about 14 hours ago, according to the aforementioned source. The quantity of the transactions, however, may give away the fact that they could be crypto exchanges reorganizing their crypto holdings.

Popular platform Robinhood, which lets users trade equities and cryptocurrencies and keeps cryptocurrency on behalf of users, saw an increase in DOGE holdings over the weekend. The information made public on Friday shows that Robinhood’s wallets have 38,317,905,469 DOGE. This enormous chunk of meme cryptocurrency was valued at $2,579,369,807.

The same source’s wallet tracker, @DogeWhaleAlert, reports that Robinhood held $1 billion less DOGE a month ago than it does now. Overall, Robinhood’s DOGE holdings increased from the 16.23% reported on May 25 to 27.39% today.

Dogecoin Price Hikes Evidently

According to an hourly chart on TradingView (Binance exchange), DOGE showed a rise of 2.44% today and is currently trading at $0.0651. DOGE briefly fell below the $0.0650 mark yesterday for the first time in the previous five days, but it swiftly rose back above it.

According to information given by CoinMarketCap, the trading volume of DOGE increased by around 20% in the last day, reaching $246 million. However, at the time of writing, Dogecoin was priced at $0.06537 with a significant hike of 0.81% over the last 24 hours.

Robinhood Implements Workforce Reduction: Layoffs Target 7% of Full-Time Employees, Reveals Report

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Approximately 150 full-time employees are set to lose their jobs, as revealed in internal company communications. Robinhood Markets, an online brokerage firm, is reportedly planning to lay off around 150 full-time staff members, constituting 7% of its overall workforce. This marks the third round of layoffs for the company in slightly over a year.

According to a message from Robinhood’s Chief Financial Officer Jason Warnick, as reported by The Wall Street Journal, the reductions are being implemented to “adapt to trading volumes and enhance team structures.”

A spokesperson from this financial services company neither confirmed nor denied the layoffs but mentioned:

“We are actively working towards operational excellence by continually assessing our collaborative efforts. In certain cases, this may entail teams making adjustments based on workload, volume, organizational design, and other factors.”

Only five days after Robinhood’s acquisition of credit card company X1 for a sum of $95 million, news of the layoffs emerged. This follows Robinhood’s previous reduction in workforce, where they decreased their total headcount by 9% in April last year, and later released 23% of the remaining staff in August. These measures were taken due to a decrease in trading activity and subdued prices of equities and cryptocurrencies, leading to a contraction in profit margins.

The two rounds of layoffs resulted in the elimination of over 1,000 employees from Robinhood’s workforce. During the second quarter of 2021, the company reached its pinnacle with 21.3 million active users and generated revenue exceeding $565 million. However, recent developments have been unfavorable for the brokerage firm. Robinhood’s Q1 2023 results displayed a significant decline, with a 44% decrease in monthly active users and a 30% year-over-year drop in revenue.

Transaction-based revenues since Q1 2021. Source: Robinhood

Currently, Robinhood shares are trading at $9.63, reflecting an 18% increase for the year. However, it is important to note that the shares have experienced a significant decline, plummeting more than 82% from their all-time high reached in August 2021.

Robinhood’s Q1 Crypto Revenue Sees a 30% Year-on-Year Decline

Robinhood, the popular trading app, experienced a decline in revenue for its crypto trading business during the first quarter of 2023. The company reported $38 million in crypto trading revenues for Q1 2023, showing a 30% decrease compared to the same period in 2022 when it generated $54 million.

The earnings report for Robinhood’s Q1 2023, released on May 10, disclosed these figures. Despite the decline in crypto trading revenue, the company’s total revenue showed a year-on-year increase. In Q1 2023, Robinhood achieved $441 million in total revenue, marking a significant rise of approximately 47.5% compared to the net revenue of $299 million in the first quarter of 2022.

Currently, the trading app holds approximately $12 billion worth of cryptocurrency in its custody, reflecting a 50% increase over the quarter. However, when compared to the same period last year, this amount is down by 40%.

The decline in crypto revenue for the trading app aligns with the overall market trend, as there was a 40% decrease in the market capitalization of digital assets during the same period. According to CoinGecko data, the global market cap for cryptocurrency was $2.1 trillion on March 31, 2022, whereas it stood at $1.2 trillion on the same date this year.

Robinhood’s Crypto Trading Volume Plunges By 68% YoY: May 2023 Data Revealed

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Robinhood, the popular online brokerage platform, has released its monthly operating data for May 2023, revealing some interesting trends in user activity and crypto trading volumes. 

According to the press release, the trading volume of cryptocurrencies on Robinhood experienced a significant decline. In May, the total trading volume for cryptocurrencies fell to $2.1 billion, marking a substantial decrease of 43% compared to the previous month and a staggering 68% decline compared to the same period last year.

Furthermore, the number of monthly active users on the platform also experienced a decline. In May, Robinhood had 10.6 million monthly active users, indicating an 8% decrease compared to April 2023 and a substantial 28% drop compared to May 2022.

These numbers come at a time when Robinhood recently delisted several digital currencies, including ADA, MATIC, and SOL. The decision to delist these assets was reportedly due to an ongoing lawsuit filed by the U.S. Securities and Exchange Commission (SEC).

Despite the decline in cryptocurrency trading, Robinhood saw an increase in other areas. Net cumulative funded accounts (NCFA) at the end of May reached 23.1 million, a slight increase of approximately 20,000 accounts compared to April 2023. 

Assets Under Custody See Modest Growth Despite Crypto Slump

Additionally, assets under custody (AUC) rose to $81.8 billion, showing a 6% growth from April 2023. Net deposits for May amounted to $1.6 billion, translating to an annualized growth rate of 25% relative to the AUC in April 2023.

Trading volumes for equities and options, on the other hand, experienced positive growth. Equity notional trading volumes reached $49.4 billion, reflecting a significant increase of 27% compared to April 2023. 

Options contracts traded also rose to 97.5 million, indicating a 29% increase. However, despite the overall positive trend in equities and options, the decline in cryptocurrency trading volumes had a notable impact on the platform’s performance.

The decline in cryptocurrency trading volume and user engagement on Robinhood raises questions about the future of the crypto market and the impact of regulatory actions. It remains to be seen how these numbers will continue to evolve in the coming months. 

Related Reading | Bitcoin Whales Accumulate Nearly 60,000 BTC Despite Consolidation; Dominance Surges Above 50%

Robinhood To Cease Support For Cardano, Polygon,& Solana Following SEC Findings

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In a surprising move, popular investment platform Robinhood has announced its decision to end support for three prominent cryptocurrencies: Cardano (ADA), Polygon (MATIC), and Solana (SOL).

The decision comes after the U.S. Securities and Exchange Commission (SEC) recently determined that a significant number of tokens listed on major exchanges Coinbase and Binance qualify as securities.

Robinhood, widely known for its user-friendly interface and accessibility to retail investors, has been offering a diverse range of cryptocurrencies for trading. 

However, due to the SEC’s findings, the platform has deemed it necessary to discontinue support for ADA, MATIC, and SOL. The delisting will occur on June 27th, 2023, at 6:59 PM Eastern Time.

The company announced a post titled “Cardano (ADA), Polygon (MATIC), Solana (SOL) Update,” where they emphasized their commitment to regularly reviewing the cryptocurrencies available on their platform. Based on their most recent assessment, Robinhood has decided to halt support for the aforementioned tokens.

Robinhood: Deadline & Options For Users

Affected users need not panic, as they will still have the ability to buy, sell, and hold ADA, MATIC, and SOL until the specified deadline. Additionally, transfers of these cryptocurrencies will be permitted until June 27th, 2023. 

However, it’s important to note that residents of Hawaii and Nevada will be unable to purchase ADA, MATIC, and SOL. In contrast, residents of New York will not be allowed to transfer these tokens.

Any remaining ADA, MATIC, and SOL in users’ Robinhood Crypto accounts will be automatically sold at their market value after the deadline. The proceeds from these sales will be credited to users’ Robinhood buying power, which can then be utilized for future investments.

The announcement explicitly states that this decision solely affects ADA, MATIC, and SOL, reassuring users that all other cryptocurrencies held on Robinhood will remain unaffected. Traders residing in states other than Hawaii, Nevada, and New York can continue to engage in transactions involving other available coins.

To alleviate concerns about the safety of users’ cryptocurrencies, Robinhood emphasizes their adherence to industry-leading security measures. 

The vast majority of customers’ holdings are stored in cold storage, a secure offline environment. Additionally, Robinhood affirms that they do not engage in lending or leveraging customers’ coins, ensuring their protection.

For those unwilling to part ways with their ADA, MATIC, and SOL investments, the option to transfer these tokens to external wallets or other crypto platforms is available for users residing in states where transfers are permitted. 

However, after the deadline, any remaining ADA, MATIC, and SOL in Robinhood accounts will be automatically sold and credited to users’ Robinhood buying power.

Related Reading |Ripple Resilience: XRP Holds Strong At $0.50 Amidst Regulatory Storm

Robinhood Contemplates Delisting Tokens Amid SEC Lawsuit Fallout

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In a recent development, Robinhood, the popular online brokerage platform, has made an announcement regarding its cryptocurrency offerings. 

According to a report, the company revealed that it is considering delisting certain tokens that have been implicated in the recent Securities and Exchange Commission (SEC) lawsuit against Binance and Coinbase.

Among the tokens under scrutiny are Solana, Polygon, and Cardano, which are currently available on Robinhood’s platform alongside 15 other digital assets.

The decision comes in the wake of increased regulatory scrutiny on Binance Holdings Ltd., the world’s largest cryptocurrency exchange, and Coinbase Global Inc., the leading exchange in the United States. 

The SEC has filed lawsuits against both exchanges, alleging that several tokens listed on their platforms are unregistered securities. As a result, Robinhood has taken a proactive approach to reevaluating its cryptocurrency offerings.

During a congressional hearing on Tuesday, Dan Gallagher, the legal chief of Robinhood and a former SEC commissioner, testified before the House Agriculture Committee. 

He informed the committee that the brokerage is actively reviewing the regulator’s analysis of the lawsuits against Binance and Coinbase. 

Gallagher stated that Robinhood is currently assessing the situation and will determine what, if any, actions need to be taken in response to the SEC’s allegations.

It is worth noting that Robinhood’s cryptocurrency selection is relatively limited compared to other platforms like Coinbase, which offers hundreds of tokens to its users. 

However, some of the tokens available on Robinhood, including Solana, Cardano, and Polygon, have been designated by the SEC as unregistered securities based on the recent lawsuits.

However, as the cryptocurrency market continues to evolve and attract attention from regulators, Robinhood’s decision to review its offerings demonstrates the importance of adhering to legal requirements and ensuring compliance. 

The outcome of this assessment will undoubtedly have implications for the availability and trading of these tokens on Robinhood’s platform, potentially leading to their delisting.

Coinbase & Robinhood to Testify Before Congress

Yesterday it was reported that Coinbase and Robinhood, two prominent cryptocurrency platforms, along with representatives from the United States commodities regulator, are slated to testify before Congress on June 6.

Their purpose is to discuss a newly proposed crypto bill that could have far-reaching implications for the digital asset market.

The proposed bill includes provisions that could potentially classify certain crypto tokens as digital commodities, among other measures. 

This classification would have a significant impact on the regulatory framework surrounding cryptocurrencies and could shape the future of the industry.

Expressing his anticipation for the hearing, Coinbase’s Chief Legal Officer, Paul Grewal, released a statement on June 5, highlighting the honor of testifying before the House Committee on Agriculture. 

Grewal emphasized the importance of establishing clear rules and regulations for the crypto market, stating that the United States should not overlook the potential of cryptocurrencies while other countries seize the opportunity to foster innovation and attract investments.

Grewal’s testimony will also focus on the need for regulatory clarity in the industry, urging lawmakers to develop rules and laws that align with the realities of this new economic system. 

He believes that only with a well-defined regulatory framework can the United States harness the full potential of crypto and transform its financial system to be faster, fairer, and more affordable.

Related Reading | Binance Faces Net Outflow Of 10.5K BTC Following SEC Lawsuit: Glassnode

Robinhood’s Dogecoin Reserve Drops After Withdrawal Of 5.7B DOGE

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Robinhood’s Dogecoin holdings have fallen from the steady supply of 24% to 16% after data tracking platform DogeWhaleAlert spotted massive withdrawals of DOGE.

According to the site, 5,700,000,000 DOGE tokens were shifted from Robinhood in total in a series of nine significant transfers in the past 2 days. Eight of them carried 680,000,000 DOGE each. One of those transactions moved 270,000,000 DOGE.

These tokens were moved from Robinhood to the top 20 wallets. However, it’s not clear if the receiving “top 20” wallet belongs to the exchange, the source tweet noted.

Before the mysterious transfers, Robinhood’s wallets had 33,562,118,525 DOGE worth of Doge on behalf of its clients. This was equivalent to $2,642,446,278 and accounted for 24.11% of the total Dogecoin supply then.

Robinhood now has 22,641,958,530 Dogecoins valued at $1.6 billion, making up 16.23% of the market’s available supply of DOGE.

Prior to this, the DogeWhaleAlert reported that Robinhood clients continue to hold on to their DOGE tightly and are not selling despite the recent unexpected success of a new meme coin PEPE.

The latest move has therefore raised eyebrows given that Robinhood’s DOGE stash survived the meme coin frenzy.

The trading platform recently released its Q1 revenue, showing that it generated $38 million from cryptocurrency trading, down from $54 million in the same quarter last year.

In addition, Robinhood disclosed that it holds around $11.5 billion in bitcoin assets, a 36% increase from the previous quarter and an indication of the early 2023 recovery of the cryptocurrency market.

Dogecoin’s New Milestone; Community’s Mixed Reaction

That being said, DOGE transactions reached an all-time high of almost 630k, thanks to the rise in demand for DRC20 tokens, a new wave of digital assets, which are being minted on the Dogecoin network.

The DOGE community’s response was divided, with some arguing that new tokens are merely attempts to cram them into the Dogecoin network.

Others view the surge in a positive light saying that the tokens provide a good opportunity for stress testing the network.

“Everyone should probably focus on the transactional currency use case. At least it’s a good test of the network’s ability to scale.”

Robinhood Holds Over $2.7B In Dogecoin, Representing 24% of Circulating Supply

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Dogecoin, the popular meme-inspired cryptocurrency, has been making headlines lately with Tesla CEO Elon Musk’s move to change the Twitter icon from bird to dog. 

To create more excitement, a recent report reveals that Robinhood, a leading trading platform, is holding a significant amount of Dogecoin on behalf of its investors.

According to Dogecoin Whale Alert, the current total combined amount of DOGE held by Robinhood on behalf of its investors is a staggering 33,562,118,437, equivalent to $2,770,888,498. It represents approximately 24.17% of the circulating supply of Dogecoin.

The Dogecoin held by Robinhood belongs to its retail investors, and the platform consolidates their holdings into a single address. Robinhood’s main wallet, 3334959, contains 8 known addresses. 

Meanwhile, their second wallet, 1699275, contains multiple addresses with a combined balance of just 927 Dogecoin as of February 2023.

Despite its recent popularity, DOGE has faced criticism from some who claim that it has an unlimited supply. However, Dogecoin Whale Alert reports that this is not the case. 

Dogecoin has a fixed rate of issuance, or the inflation rate, and is designed to issue 5 billion additional coins yearly. It allows the total circulating supply to grow by 100 billion coins every 20 years.

Currently, there are 138,853,116,383 Dogecoins in circulation with a low inflation rate, making it an ideal cryptocurrency for everyday transactions. In 2015, the circulating supply was 100 billion, with a 5.00% inflation rate. 

It is projected that by 2035, the total supply will increase to 200 billion with a 2.56% inflation rate. By 2055, the total supply will be 300 billion with a 1.69% inflation rate; by 2075, the total supply will reach 400 billion with a 1.27% inflation rate.

Nevertheless, the recent news about Robinhood’s significant Dogecoin holdings indicates a growing interest in this cryptocurrency. 

Elon Musk’s Move Impact On Dogecoin Price & Whale Holdings

Cryptocurrency enthusiasts were surprised by the effect of a tweet from Elon Musk on the price of DOGE a few days ago, as reported by Lookonchain, a crypto tracking platform.

On April 4th, Musk changed his Twitter profile picture to that of a dog, and within hours, the price of DOGE increased by around 30%. However, on April 7th, Musk changed his profile picture back to its previous state, and the price of DOGE decreased by approximately 6%.

During this period, two of the top five DOGE holders, “DDuX” and “D8ZE,” reduced their holdings by about 1.4 billion DOGE, worth roughly $121 million. 

It’s unclear if these addresses are related to Musk, but his social media presence undoubtedly significantly impacts the cryptocurrency market.

Related Reading |  XRP’s Price Movements Tied To Bitcoin & ETH, Admits SEC Expert: Ripple Lawsuit Implication 

Polygon, Shiba Inu Now Available On Robinhood Wallet: Details

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Polygon [MATIC], Shiba Inu [SHIB], Solana [SOL], etc are among the crypto assets that have been added to Robinhood Wallet for all iOS users globally, the company announced via a blog post.

The crypto exchange revealed that over 1 million users have signed up for the waitlist and it is now available globally via the Apple App store where it has already been downloaded in more than 130 nations.

Robinhood Wallet is a multi-chain, self-custody, Web3 wallet that enables users to hold and trade cryptocurrencies, and connect to a number of decentralized applications [dapps].

Since the time it entered the beta era last September, the crypto wallet has undergone several notable changes based on customer feedback.

In addition to Polygon, Robinhood Wallet now supports Ethereum and more than 50 ERC tokens, such as SHIB, SOL, UNI, USDC, and many others without the need for a waitlist or invitation code.

We’ve added support for NFTs on both Ethereum and Polygon, so users are able to safely view and store their favorite collections. 

According to Johann Kerbrat, general manager of Robinhood Crypto, the response to Robinhood Wallet has been overwhelmingly positive when it initially debuted in beta. The startup wants to make Robinhood the most dependable, affordable, and user-friendly gateway to cryptocurrency.

Besides iOS users, the firm also stated that Android compatibility will arrive later in 2023.

The partnership between Robinhood and Polygon began in August 2022, when the platform implemented support for MATIC deposits and withdrawals on the Polygon proof-of-stake [PoS] chain.

Robinhood’s First Non-Custodial Web3 Wallet Was On Polygon

Then in Sept 2022. the trading platform tapped Polygon over Ethereum for its first non-custodial crypto wallet.

That being said, the leading layer-2 scaling protocol for Ethereum has rolled out its first decentralized ID product powered by ZK proofs.

After nearly a year of announcement, Polygon launched a zero-knowledge decentralized identity solution to the public.

The new ID service utilizes zero-knowledge proofs [ZK proofs] that use cryptographic techniques to allow users to verify their identity online without the help of any third party.

It also claimed that is its first ZK-based digital ID tool that allows users to hold credentials locally on handheld devices such as smartphones, and that users will no longer need passwords

The team further stated that Polygon ID was built to “solve the issue of digital trust.”