Cryptocurrency

Ignoring Shiba Inu (SHIB) Has Possibly Cost Robinhood Millions in Crypto Revenue. Here’s Why

For quite a long time, the Shiba Inu community has been anticipating the incorporation of the digital token SHIB on Robinhood, an online no-commission investing platform.

It was earlier reported by Times Tabloid that Robinhood may not be listing the second-largest meme token anytime soon due to regulatory concerns.

Read Also: Shiba Inu Now Bigger Than Nissan and LG Electronics as Petition for Robinhood Listing Gets Over 326,000 Signatures

However, the popular investing platform may have started paying dearly for ignoring Shiba Inu (SHIB), considering its latest earnings report, where it recorded a huge loss on its crypto revenue in the fourth quarter of 2021.

In the earnings report published on 27th January, the trading platform recorded $48 million crypto income in the fourth quarter of 2021, representing a 6% drop from the previous quarter, and a step further from a projected revenue of about $55 million from the previous period.

Following the release of the Q4 earnings report, Robinhood shares (HOOD) experienced a relatively 14% decline as Wallstreet investors were forced to manage lower than expected earnings.

Although the online investing platform is still up 300% compared to 2020, its persistence in refusing to list more cryptocurrencies, such as Shiba Inu (SHIB), will possibly keep its shortfall trend.

Read Also: AMC Theaters Confirms That It Will Start Accepting payments with Dogecoin (DOGE) and Shiba Inu (SHIB) in March 2022

Reacting to the revenue decline, Julie Chariell, an analyst at Bloomberg Intelligence pointed out that “The crypto numbers look “a little bit light compared to last quarter — so huge growth year-over-year, but down from last quarter, perhaps because they don’t have Shiba Inu, – “That’s the one coin that they’re missing, everyone’s waiting for. But the key part to that now is what happens in the first quarter and we know it’s looking ugly so far this year.”

Shiba Inu (SHIB), the second-largest meme token in the market, gained traction among crypto investors across the world after skyrocketing by relatively 1,000% in October 2021, displacing the largest meme token in the market, Dogecoin (DOGE) in the process.

The meteoric rise of the cryptocurrency prompted investors to continuously ask for its listing by Robinhood. SHIB investors went as far as launching an online petition to garner 1 million signatures. As of the time of writing, the petition has received over 550,000 signatures.

Read Also: Shiba Inu (SHIB) Goes Live On the Regulated Crypto Trading Platform Uphold

Despite the notable figure, Robinhood has not shown the SHIB Army the long-awaited green light, citing regulatory concerns.

During the Thursday earnings call, Robinhood CEO, Vlad Tenev said:

“I wouldn’t say that we’ve been prevented from adding any coins. We have been proactively engaging with the regulators. They are concerned that a lot of these platforms that are adding a lot of coins may be adding unregistered securities… We are definitely being deliberate. We want to avoid triggering SEC registration requirements.”


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Tobi Loba

Tobi Loba is a passionate writer with a vast interest in the stock market. She joined the crypto ecosystem about three years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects. Tobi Loba earned her degree at the University of Ibadan.

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