11 months ago
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Robinhood, a crypto and stocks trading platform, has not escaped the biting crypto wintertime that has been ravaging the space. In a caller announcement, the institution has revealed a important diminution successful its trading volumes arsenic regulatory unit mounts connected crypto firms.
Robinhood Crypto Trading Volume Falls 68%
In its operating information report for May released connected Monday, Robinhood revealed that its trading measurement had suffered tremendous setbacks connected some a monthly and yearly basis. The trading app said that its crypto trading measurement declined successful the period of May by 43% to lone $2.1 cardinal recorded for the month.
On a year-over-year basis, Robinhood’s numbers were adjacent worse. Its May 2023 $2.1 cardinal figures signified a 68% diminution from its May 2022 figures of $6.6 billion, the largest diminution recorded by the institution for the period of May.
Furthermore, determination was besides a diminution successful the fig of progressive users connected the platform. Robinhood revealed that its progressive idiosyncratic numbers fell from 11.5 cardinal the erstwhile period to 10.6 million, a 7.8% decrease.
Interestingly, the platform’s options contracts numbers were affirmative aft rising 36% for the month. This summation shows a displacement successful capitalist sentiment and focuses arsenic determination seems to beryllium a determination distant from crypto toward different concern avenues.
Fighting Through Regulatory Pressures
The figures for Robinhood travel astatine a clip erstwhile crypto firms are coming nether occurrence from the United States Securities and Exchange Commission, among different agencies. Last week, the SEC sued the Binance and Coinbase exchanges and successful the people of these lawsuits, proclaimed a fig of cryptocurrencies to beryllium securities.
In response, Robinhood delisted 3 tokens that were named to beryllium securities by the SEC, including Polygon (MATIC), Solana (SOL), and Cardano (ADA). For the trading platform, the determination was prompted by regulatory enactment being taken against integer assets which could precise good see these 3 soon enough.
The announcement sent to users advised that they withdrew their ADA, SOL, and MATIC assets by June 26, 2023, arsenic they would nary longer beryllium supported by the platform. Additionally, each trading for these assets would beryllium halted connected June 27, 2023.
Robinhood’s banal has fared rather good implicit the past period though. It is presently trading astatine $9.42 astatine the clip of writing, lone 5.4% beneath its May highest of $9.96.
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