© Reuters
By Dhirendra Tripathi
Investing.com – Robinhood (NASDAQ:) stock was volatile in Thursday’s premarket after the company’s chief financial officer downplayed rumors that it is about to begin offering trading in the Shiba Inu cryptocurrency.
Jason Warnick said at a virtual event hosted by The Wall Street Journal, “There are no compelling strategic reasons for our company to put a significant amount of its cash into cryptocurrencies.”
CEO Vlad Tenev has previously stated that the company is not likely to be at the forefront of listing crypto assets for trade, and Warnick has repeated this, with a nod to the various initiatives digital asset regulations from Washington.
“We’re a highly regulated company in a highly regulated industry, and we think it’s important that we get a little more clarity from regulators,” Warnick said, according to the WSJ. He noted, however, that customers’ desire to see more coins available for trading on the platform “is not lost on us.”
constitutes the bulk of Robinhood’s revenue from cryptocurrency transactions, a revenue structure the platform has sought to de-risk. According to a Bloomberg report, it is currently testing a new cryptocurrency wallet and cryptocurrency transfer functions that would allow users to send and receive digital currencies through its trading app.
At $51 million, cryptocurrencies contributed nearly a fifth of the $267 million in revenue Robinhood earned from transactions on the platform during the September quarter.
Robinhood stock was up 0.7% initially before giving up gains and later trading down 0.3%.
Shiba Inu, one of a handful of ‘crypto memes’ to rise to prominence in the last year, rose 16% following the rumor that circulated on Wednesday which was based on mock titles designed to look like a regular news agency report.
The stock was still up 12% at 4:30 a.m. ET (9:30 a.m. GMT), despite the rumor’s apparent lack of substance.
The Shiba Inu is of extremely limited use, since only a few hundred traders around the world accept it as a means of payment. It is still down more than 60% from its 2021 high.
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