The Robinhood app downloads are declining fast as the new investors seem less interested in crypto trading apps right now according to the latest report by JPMorgan so let’s read more in our latest cryptocurrency news.
JPMorgan reports show that Robinhood app downloads are declining which could eventually lead to a drop in the company’s stock price. Downloads of the Robinhood app plunged and this could lead to a dip in the price of the stocks as well. The stocks could receive a hit as big as 20% as the meme stock craze dies down with the investment bank analysts adding and the app allows investors to buy stocks and cryptos easily and quickly and it became much more popular with younger and amateur investors.
Robinhood CEO, Vlad Tenev
The app’s download and the active user metrics dropped immensely this quarter and dropped 78% and 40% respectively as the analyst noted. The crypto exchange apps Coinbase and Binance downloads dropped as well but not as dramatically, by about 50%. Robinhood was incredibly popular at the start of the year, especially with the crypto traders. The app also reported that 9.5 million of the customers traded crypto in Q1 of 2021 and a 458% spike from the last quarter of 2020.
The meme stocks were popular ont the app as well during the GameStop short squeeze and this is when the amateur traders pushed the stock prices of the GameStop game retailer to a new high and made the Wall Street bigwigs lose a huge chunk of money in the process. Since then, the app has had some issues. The company went public but had a rough start with the worst debut for an IPO of its size with the shares dropping 8.4% to $34 from their opening price of $38.
It also had some trouble with the regulators with the company hitting $70 million in fines over widespread and major harm suffered by customers. Teh biggest ever dished out was by the Financial Industry Regulatory Authority and was related to teh misleading communication, many system outages and inappropriate customer approvals. These issues along with the BTC price crashing, are a part of the reason fewer people are getting interested in the app according to analysts.