Robinhood (NASDAQ: HOOD) released its Q3 report showing a fall in revenue, but the firm says it does little to dampen its digital asset efforts in the future.
The brokerage firm recorded a 12% quarter-on-quarter loss in monthly active users while notional volume tumbled by 24%, spelling worry for investors. Revenues from digital assets, an area in which Robinhood had scored relative success, fell below expectations with a 12% slide in Q3.
The firm blamed the market volatility faced by users for the declining volumes and fall in active users but remained upbeat about its digital asset plans. Part of the plans by Robinhood in the future is to support a broader range of virtual currencies on the platform and expand its digital wallet to international users in the future.
In Q3, the firm added some assets to its exclusive list, but company CEO Vladimir Tenev noted that Robinhood would not deviate from its mantra of being the most trusted service provider in the space.
“We hope that customers understand and appreciate that we’re moving carefully,” said Tenev. “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.”
As the year comes to a close, Vlad added that Robinhood made adding Lightning Network integrations as priority for the company. A program that allows users to learn the rudiments of virtual currencies has been rolled out and provides the opportunity to earn tokens as a reward.
Following the release of the financial report, the firm’s share took a hit, falling by 4.36% to trade at $11.40. A look at the share price over an 11-month period shows a decline of 69%, a worrying trend for shareholders.
Robinhood building in the middle of the ‘crypto winter’
The downturn in asset prices has seen firms adopt a conservative approach toward building new projects in the industry. However, Robinhood’s CEO remains unfazed by the grim prospects, saying that “this is the best time to build.”
He added that the most successful companies in the industry were founded during bear runs because they are not distracted by the buzz of rallies.
“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,” said Tenev.
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