Robinhood turns profitable in Q2, but crypto revenue declines
Robinhood achieved profitability for the first time since becoming a public company in the second quarter of 2023. Its crypto revenue, however, continues to decline.
Čítaj viacpodľa Cointelegraph By Ana Paula Pereira | aug 2, 2023 | 0 |
Robinhood achieved profitability for the first time since becoming a public company in the second quarter of 2023. Its crypto revenue, however, continues to decline.
Čítaj viacpodľa Cointelegraph By Helen Partz | júl 25, 2023 | 0 |
Robinhood has been planning expansion into the United Kingdom since 2019 but the project has faced multiple delays.
Čítaj viacpodľa Cointelegraph By Amaka Nwaokocha | júl 15, 2023 | 0 |
Cathie Wood, the Bitcoin advocate, is actively investing in Meta Platforms (META) and Robinhood Markets (HOOD) shares.
Čítaj viacpodľa Cointelegraph By Tom Mitchelhill | jún 27, 2023 | 0 |
Roughly 150 full-time employees are being laid off, according to internal company messages.
Čítaj viacpodľa Cointelegraph By Ana Paula Pereira | jún 22, 2023 | 0 |
In 2022, X1 claimed to have 500,000 people on its waiting list for a credit card. Over the past two years, the startup has raised $62 million from venture capital firms.
Čítaj viacpodľa Cointelegraph By Emi Lacapra | jún 11, 2023 | 0 |
Robinhood’s business model sustains itself with multiple revenue streams, mainly through a practice known as payment for order flow. Order flow Order flow is a compensation structure widely used by Robinhood and other similar brokerages to process retail stocks, ETFs, options and crypto trades. This is how it works: When customers place trades on the platform, their orders are routed to market makers or trading firms for execution and to make an order flow. These firms pay Robinhood fees for the opportunity to execute their trades and potentially profit from the bid-ask spread and other trading strategies. While this practice allows Robinhood to offer zero-commission trades to its users, its order flow model has faced regulatory scrutiny and controversy due to concerns about potential conflicts of interest and the quality of trade execution. Interest on cash balances When customers hold uninvested cash in their Robinhood balance, Robinhood directs such funds to pools and earns interest on them. The platform shares a portion of this interest revenue with its users, typically through a “Robinhood Cash Management” program that users must opt in to to earn a small percentage of interest on their uninvested cash balances. The cash can be accessed with a Robinhood debit card. The company moves customers’ uninvested money into FDIC-insured partner banks that then pay Robinhood a fee, including a small share of the interchange fees from the debit card transactions. Premium accounts While the basic trading services are commission-free, premium account subscriptions allow investors to access various premium-tier tools. The subscription is called Robinhood Gold, and it provides additional features and benefits to users who pay a monthly fee. Such advantages include more significant instant deposit amounts, access to Level II market data provided by NASDAQ, professional research information from Morningstar and margin trading. Robinhood API fees Robinhood allows developers and companies to access application programming interfaces (APIs) that they can integrate with their platform. Robinhood earns revenue from these partnerships and integrations by charging API access fees. Securities trading Robinhood launched a lending program that entitles its customers to earn money on stocks. Users who opt for this solution allow the trading app to lend their shares to financial institutions that use such funds for different purposes, including covering deficits, facilitating trade settlements and executing short sales. Borrowers pay Robinhood interest on the loan they received, and a portion of that revenue is passed on to Robinhood users.
Čítaj viacpodľa Cointelegraph By Turner Wright | jún 9, 2023 | 0 |
The company cited the SEC’s actions against Coinbase and Binance as reasons for the delisting, saying the lawsuits “introduced a cloud of uncertainty” around the tokens.
Čítaj viacpodľa Cointelegraph By Jesse Coghlan | máj 11, 2023 | 0 |
The money coming in for the trading app’s crypto business reached $38 million over the first quarter of 2023, down from $54 million in Q1 2022.
Čítaj viacpodľa Cointelegraph By Turner Wright | máj 3, 2023 | 0 |
The Massachusetts secretary of the commonwealth’s office filed a complaint against Robinhood in December 2020 alleging the platform was in violation of the state’s fiduciary duty standards.
Čítaj viacpodľa Cointelegraph By Tristan Greene | apr 27, 2023 | 0 |
Robinhood Markets announced the launch of its new “Robinhood Connect” service and numerous updates to its app.
Čítaj viacpodľa Cointelegraph By Turner Wright | apr 6, 2023 | 0 |
The investigation looked into complaints of Robinhood’s system outages, causing users to miss out on trades while many of the platform’s services were unavailable.
Čítaj viacpodľa Cointelegraph By Jesse Coghlan | nov 29, 2022 | 0 |
Newly-bankrupt crypto lending platform BlockFi has filed a lawsuit against Sam Bankman-Fried’s holding company Emergent Fidelity Technologies seeking his shares in Robinhood that were pledged as collateral earlier in November.The suit was filed on Nov. 28 in the United States Bankruptcy Court for the District of New Jersey just hours after BlockFi filed for Chapter 11 bankruptcy in the same court.As per the filing, BlockFi is demanding Emergent turnover collateral as part of a Nov. 9 pledge agreement that saw Emergent agree to a payment schedule with BlockFi that it has allegedly failed to pay.BlockFi names the collateral as “including certain shares of common stock.”In May, Bankman-Fried acquired a 7.6% stake in the online brokerage firm Robinhood, buying a total of $648 million in Robinhood shares through his Emergent investment company.Related: FTX collapse drives curiosity around Sam Bankman-Fried, Google data showsBlockFi is one of the latest firms to file for bankruptcy as a result of the collapse of FTX crypto exchange. The crypto firm initially previously denied that a majority of its assets were held on FTX earlier in the month, but also acknowledged “significant exposure” to FTX.In its bankruptcy filing, BlockFi stated that it has assets between $1 billion and $10 billion with liabilities in the same range, along with over 100,000 creditors.
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