Robinhood’s cryptocurrency buying and selling quantity hit $3.7 billion final month, a 95% improve in comparison with December 2022.
Opposite to the great begin of the yr, the 2022 bear market took its toll on the agency’s crypto income. It additionally dismissed practically a 3rd of its whole headcount.
Beginning off on the Proper Foot
The cryptocurrency market made a powerful comeback throughout the first month of 2023, with most property considerably rising their valuation in comparison with the tip of 2022. Bitcoin, for instance, surged from roughly $16,500 (on New 12 months’s Eve) to virtually $23,000 30 days later (a 40% spike).
The improved market circumstances appear to have benefited the California-based investing platform – Robinhood. Its crypto buying and selling quantity in January reached $3.7 billion, 95% up from the $1.9 billion marked in December. Nonetheless, the determine stands far beneath the $9.1 billion recorded in January 2022.
Every day common income trades (DARTs) involving digital currencies climbed from 200,000 (December 2022) to 300,000 (January 2023). Throughout the first month of the earlier yr, they have been 400,000.
The shares of the corporate rose round 6% following the announcement and at the moment commerce at roughly $10.60.
The Issues Final 12 months
The tumultuous 2022 considerably shrunk Robinhood’s cryptocurrency income and declined its total buying and selling actions. Its web income was down 43% in Q1 final yr, whereas crypto buying and selling plunged virtually 40%. Q3 (12% lower in crypto-related income) and Q4 (24% drop) have been additionally disappointing.
As well as, the New York State Division of Monetary Companies (NYDFS) slapped Robinhood with a $30 million tremendous in August over allegations it violated anti-money laundering and cybersecurity procedures.
The platform additionally added its identify to the numerous checklist of crypto-related organizations which laid off a piece of their workforce as a result of unfavorable macroeconomic circumstances and the market crash. It fired 9% of its staff in April and dismissed 23% a number of months later.
CEO Vlad Tenev outlined the spiking inflation within the US as the principle issue behind the layoffs. He assured every departing worker would obtain common pay and advantages (together with fairness vesting). The agency additionally vowed to supply help when searching for different job alternatives, money severance, in addition to dental and imaginative and prescient insurance coverage premiums.
Most affected staff have been from the operations, advertising and marketing, and program administration divisions.
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