Robinhood’s cryptocurrency trading volume hit $3.7 billion last month, a 95% increase compared to December 2022.
Contrary to the good start of the year, the 2022 bear market took its toll on the firm’s crypto revenue. It also dismissed nearly a third of its total headcount.
Starting off on the Right Foot
The cryptocurrency market made an impressive comeback during the first month of 2023, with most assets significantly increasing their valuation compared to the end of 2022. Bitcoin, for example, surged from approximately $16,500 (on New Year’s Eve) to almost $23,000 30 days later (a 40% spike).
The improved market conditions seem to have benefited the California-based investing platform – Robinhood. Its crypto trading volume in January reached $3.7 billion, 95% up from the $1.9 billion marked in December. Still, the figure stands far below the $9.1 billion recorded in January 2022.
Daily average revenue trades (DARTs) involving digital currencies climbed from 200,000 (December 2022) to 300,000 (January 2023). During the first month of the previous year, they were 400,000.
The shares of the company rose around 6% following the announcement and currently trade at approximately $10.60.
The Problems Last Year
The tumultuous 2022 significantly shrunk Robinhood’s cryptocurrency revenue and declined its overall trading activities. Its net revenue was down 43% in Q1 last year, while crypto trading plunged almost 40%. Q3 (12% decrease in crypto-related revenue) and Q4 (24% drop) were also disappointing.
In addition, the New York State Department of Financial Services (NYDFS) slapped Robinhood with a $30 million fine in August over allegations it violated anti-money laundering and cybersecurity procedures.
The platform also added its name to the countless list of crypto-related organizations which laid off a chunk of their workforce due to unfavorable macroeconomic conditions and the market crash. It fired 9% of its employees in April and dismissed 23% several months later.
CEO Vlad Tenev outlined the spiking inflation in the US as the main factor behind the layoffs. He assured each departing employee would receive regular pay and benefits (including equity vesting). The firm also vowed to provide assistance when looking for other job opportunities, cash severance, as well as dental and vision insurance premiums.
Most affected employees were from the operations, marketing, and program management divisions.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.
#Robinhood #Crypto #Trading #Volume #Shot #January