Sorry, SHIB: Robinhood Says No New Crypto Listings For Now

In brief

  • Robinhood’s CFO cited concerns about regulators.
  • The company also said its wallet will be rolled out to all users by the end of March.

The CFO of Robinhood, Jason Warnick, said on Wednesday that the company has no immediate plans to add new crypto assets—a move that will come as a disappointment to owners of Shiba Inu (SHIB) and other tokens that stand to get a boost from a listing on the popular platform.

Speaking to reporters shortly after Robinhood posted Q4 earnings, Warnick said the company is proceeding cautiously in light of conversations with regulators who have warned they may regard certain tokens as unlicensed securities.

“We know our customers want new coins. The message is clear,” said Warnick, adding Robinhood is committed to new assets but is not able to state when it will list them.

Crypto has become a central part of Robinhood’s business strategy, which includes the recent launch of a wallet that will let customers send their assets off the platform. The wallet launched in beta this month, and Warnick said it should be available to everyone by the end of March.

Warnick also noted that launching its crypto products internationally will be a key focus for Robinhood in coming months, and that the company will soon launch a debit card that will facilitate quicker withdrawals.

All of this comes amidst a rocky stretch for Robinhood, which posted another quarterly loss on Thursday. The company revealed it lost 49 cents per share—compared to analyst expectations of a 42 cent loss—and that its revenue grew to $363 million, which fell shy of the predicted $370 million figure.

This in turn caused Robinhood’s share price to fall to another record low in after-hours trading. As of late Thursday afternoon, the stock was trading around $10—a far cry its high of around $82 when the company went public in mid-2021.

The company was riding high last summer in part thanks to a surge in Dogecoin trading, which made up a significant portion of its overall revenue.

Now, though, that trading has fallen off considerably while its other product lines—equities and options trading—have remained mostly flat.

Robinhood, which has become the subject of acquisition rumors in recent weeks, is betting that it can achieve a turnaround in part by offering new products such as retirement accounts. Meanwhile, Warnick also predicted that the company’s crypto wallets could prove to be a long-term strategic asset.

“It’s a huge opportunity. We still think it’s early but crypto wallets are a foundational experience,” he said.

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Cardano network at record capacity due to SundaeSwap launch, but not all users hail it as a success

According to both Cardano Blockchain Insight and pool.pm, the Cardano (ADA) network has maintained record capacity for nearly two weeks due to the launch of decentralized exchange, or DEX, SundaeSwap; the first of its kind to go live on Cardano. At the same time, the total value locked for the ADA blockchain reached a record of approximately $80 million, despite the recent fall in the token’s price from the ongoing down market.

The current average blockchain load of the network hovers at 93.19%, which means that 93.19% of its blocks are being filled. In context, the metric amounted to only 32.49% on New Year’s Eve. The number of ADA wallets is also on the verge of breaking the 3 million mark.

Many ADA enthusiasts took to social media to celebrate the milestones. However, the phenomenon of the network nearing full capacity due to the addition of just one DEX raised questions about its utility, although scaling solutions are coming soon. Reddit user Additional_Till_838 pointed out:

“I dislike this because it paints a picture of Cardano’s blockchain being overloaded and struggling to handle the load. This could scare investors away from Cardano and make them think that it is not a reliable blockchain network.”

Not all went smooth during SundaeSwap’s launch either. Soon, user reports of failing transactions began circulating widely on social media. At the time of publication, users are still alleging that their DEX orders remain unprocessed, despite submitting them a few days ago. More critically, the platform is locked in a publicized commercial dispute regarding allegations of failed investor promises with Cardano accelerator program CardStarter. Even Charles Hoskinson joined in on the debacle, telling the two parties to “get your shit together!” and settle their differences via arbitration or litigation.