The CFO of Robinhood has dashed hopes of Shiba Inu (SHIB) being listed on the influential online no-commission investing platform anytime soon.
No SHIB On Robinhood
Shortly after Robinhood released its Q4 earnings on Thursday, chief financial officer Jason Warnick told reporters that the firm is treading carefully when it comes to adding new crypto assets on its platform due to concerns that some cryptocurrencies may be deemed unregistered securities by US regulators.
“We know our customers want new coins. The message is clear,” Warnick observed. Remarkably, the Shiba Inu community has stepped up a campaign in recent months to convince Robinhood to list SHIB, and a petition on Change.org has now surpassed over 555,000 signatures. Yet, Robinhood executives have time and again stressed that they are awaiting regulatory clarity before listing more cryptocurrencies, particularly the popular meme coin Shiba Inu.
Robinhood, which is mainly a stock trading app, has in recent times expanded to crypto. The popular platform has listed seven coins so far, including bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE). Moreover, Robinhood launched the public beta of its cryptocurrency wallet this month and hopes for a full rollout before the end of March. Previously in December, the trading app added a gifting feature that would allow users to send as little as $1 worth of crypto to friends and family.
The Robinhood CFO further stated that it’s focused on opening up its crypto products to customers across the globe in the next few months. According to Warnick, Robinhood is also set to soon launch a debit card that will enable faster withdrawals.
Is Robinhood’s Failure To List SHIB The Real Reason For Its Shares Underperformance?
Robinhood enjoyed a boom in profits last summer, primarily because of heightened Dogecoin trading, with the commissions from the trading contributing to the majority of its overall revenue.
Now, however, this crypto-related trading has reduced significantly in recent months and its other product lines have fallen short of expectations. The shares of Robinhood slumped by over 11% in after-hours trading on Thursday after the company’s fourth-quarter revenue and earnings missed forecasts by analysts.
Robinhood went public via an IPO in July last year with the shares of Class A common stock priced at $38 apiece. The shares of the company have now declined by circa 85% from their peak.
Bloomberg senior analyst Julie Chariell believes this disappointing performance is because Robinhood has refused to add SHIB. “That’s the one coin that they’re missing, everyone’s waiting for,” she said.
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