Robinhood’s crypto transaction revenue soars 232% from a year ago: CNBC Crypto World

Robinhood’s crypto transaction revenue soars 232% from a year ago: CNBC Crypto World

today the public debut of a crypto wallet maker is postponed after the SEC launches a review surging crypto Revenue drives Robin Hood to a big earnings beat in the first quarter and L frangela of Kraken breaks down why companies are turning to Formula 1 fans to drive crypto adoption welcome to cnbc’s crypto world I’m Mackenzie sigalos the crypto Market is largely unchanged this morning with Bitcoin hovering at around 62 $2,000 at noon Eastern ether was flat in the day as well still trading at $3,000 salana inched slightly higher to $146 okay let’s talk about the top stories Robin Hood’s crypto business helped Drive the company to a huge earnings beat in the first quarter the company reported earnings after the Bell on Wednesday with Revenue coming in at $618 million for the quarter compared to estimates of $549 million EPS came in at 18 cents per share compared to 6 cents expected cryptocurrency trading accounted for $126 million in Revenue in the quarter that is a 2 32% increase in crypto transaction Revenue year-over-year investors jumped in to take advantage of this year’s rally Robin Hood CEO Vlad tenith joined cnbc’s Kate Rooney on last call to talk about the quarter’s huge crypto boom we were proud of this quarter because it really shows that the strategy is working and if you remember we’re focused on three things winning the active Trader Market growing wallet share with our customers and expanding internationally so crypto was strong we saw growth in equities and options market share as well which rounded out the active Trader Investments we’ been making we also had the largest net deposits in the history of the company so that’s net uh cash and assets moving into Robin Hood of over $1 billion which is the highest ever this huge quarter for Robin Hood also comes as the SEC could be preparing for enforcement action against the trading apps crypto operations tenev also addressed the company’s disclosure of Wells notice from the regulator last weekend we tried to create what’s called a special purpose broker dealer for the purpose of transacting in crypto assets um and we actually came in good faith to meet with the SEC I think we met with them 16 times and unfortunately that was not reciprocated and it was clear that uh there didn’t seem to be a path next up binance reportedly fired an investigator after he uncovered Market manipulation according to the Wall Street Journal the investigator and his team uncovered pump and dump schemes and wash trading initiated by some of binance’s VIP clients those being the largest on the exchange these kinds of Trades are prohibited by binance’s terms of service but reportedly happened anyway one VIP client of focus was DWF Labs which reportedly op operated as a market maker those buy and sell assets and pocket the difference the Wall Street Journal reports that the investigation team found that DWF was manipulating the price of multiple tokens the team reported those findings but insiders told the journal that binance instead launched an investigation into their surveillance team now that investigation reportedly concluded that the head of the team collaborated with a DWF competitor and he was subsequently fired toward the end of last year binance responded to the report on saying that it affirms its strict Market surveillance program and that its investigations team’s job is to be neutral and look at evidence without bias DWF also responded on X saying that it operates with the highest standard of Integrity transparency and ethics also real quick we just found out this morning that Canada’s Financial transactions and reports analysis Center handed down a fine of around 4.4 million us over money laundering and terrorism financing violations you reached out to Finance about this but haven’t heard back yet finally the US public debut of crypto wallet Exodus has been postponed the company behind the wallet Exodus movement was supposed to list on Thursday in the New York stock exchanges American Market designed for growing businesses but on Wednesday NY American told the company that the listing was delayed thanks to a review by the SEC in a press release that Company CEO JP Richardson said that the firm was surprised and confused by the last minute decision ision but that Exodus remains hopeful that the SEC will treat the company as the law intents Exodus also said in the release that it will reconsider listing on a national Securities Exchange at a future date after the SEC review but for now Exodus will keep trading on over-the-counter markets all right let’s talk about crypto and sports for our main story the Miami Grand Prix took place last weekend and the event was filled with crypto Partnerships crypto world’s Jordan Smith spoke with Krakens Lu frangela of why the exchange sees Formula 1 as the right place to attract crypto interest so Lou I’m checking in with you because this is I believe the fourth Formula 1 event in the US that Kraken has been a part of there have been some others outside the US too um but you were in Miami last weekend for the Grand Prix you had a fan Zone there talk about how that event went and uh what did interest look like at uh the Miami Grand Prix yeah um it the the fan zones that Williams have been doing have been really exciting I think you know when you think about Formula 1 in general it’s an inaccessible sport for a lot of people right it’s very expensive um it hits certain locations throughout the year even though they hit a number of different countries I think over 20 um but Williams has created this model with these fan zones that allow free access to fans to come and enjoy and get a taste of Formula 1 they bring the drivers they bring the team principal there’s a number of activations set up so when we partnered with them you know we felt like this was a great opportunity to help Elevate those experiences um Miami was was absolutely incredible so you know again free to enter but we provided some additional free experiences and access to to people that um you know have come into the Kraken ecosystem since the partnership we had about 20,000 uh attendees of the fan Zone throughout the week which I think is is very phenomenal and right on on target with the numbers that you know we’ve seen across the year in terms of its scaling so it was great um the race itself I think was the highest viewed F1 race in the US of all time so we definitely it definitely lived up to the hype yeah it’s been about it’s been a little more than a year actually since you partnered with Williams um you’ve you’ve done Austin you’ve done Las Vegas and others and I’m we’ve talked about that partnership on crypto world in the past um but I want to know how it’s going so far you mentioned the amount of people that have come to these fan Zone events um you’re talking about the growing viewership of Formula 1 in the US talk about why uh this partnership worked for Kraken what made you so excited for it yeah I mean Williams was was the perfect partner for us I mean we we obviously had a number of different conversations just generally on you know where to align our brand and they checked all the boxes with us from mission to Brand to the values um you know obviously our mission is to accelerate the worldwide adoption of cryptocurrency to help others Achieve Financial Freedom and inclusion um Williams is very aligned with that mission you know when we when we were looking at you know why them um you know there’s a number of of factors one you know they’re one of the oldest F1 teams in the sport you know the Legacy is is so important obviously you know we’ve been around for over 12 years almost 13 at this point as well in the crypto industry so if you calculate the dog years um it adds out to to be sort of the same thing um you know that that mission alignment for us is the actual key to success when it comes to you know really furthering it and Williams was was very aligned with it you know we’ve we’ve done a number of things with them last year as I’m sure that you’ve you’ve already discussed but um you know this grid Pass Program that we’ve created with them is basically a way to to give access an exposure to people to you know blockchain technology and crypto um in a way that’s easy that’s educational that’s understandable that helps further their fandom so you know the fact that we’ve been a been able to build this with them and make it free for people um I I think we’ve seen a lot of success with it and I don’t think there’s any other partner on the grid out there that you know would would be willing to do something like that um and really you know match values in that way what does the overlap look like between a Formula 1 fan and a crypto fan that that you seem so focused on is it really just about the fact that you guys are sort of growing in tandem there’s a growing Formula 1 audience and you’re growing at the same time or is there something specific about that sport fan that that makes them appealing uh for advertising in crypto we found a lot of audience overlap between you know traditional Financial users and cryptocurrency users and um Automotive Sports and particularly Formula 1 so you know for us it was it was just the perfect way to introduce ourselves to to Partnerships I know having not had done any on on this scale before so um I think that’s what it was to us and obviously you know what we’re trying to do is I think what hadn’t been done in the past is proper education in a way that you know is is unique um and really helping folks learn about this great technology and what Kraken is and what crypto is and how to get started um so I think we want to do that in a way that is respectful and and definitely a way that helps meet them where they are um in their Journey jne so I think for fan zones again on the topic of fan zones for us it actually provides an opportunity for us to speak face to face with a lot of these people that are current customers or future clients of ours um and help answer those questions live on site um and you know for Kraken I mean we’re the only crypto company that has Live Customer Support as well so if there’s more questions that continue after that as they come on to their Journey with Kraken and and crypto they can give us a call there do you see an uptick and adoption after these types of events has it been successful for you in terms of that goal of educating people and bringing people into the ecosystem um what’s the end result there it’s been it’s been really successful um you know we we launched this this Williams racing collectibles plus program is the the full digital Collectibles program that is completely free to Williams fans the grid pass is the first collectible or nft within that collection and it basically acts as the key to unlocking the rest of the experiences rewards Collectibles that we’ll that we’ll be doing and continue do to do with Williams since launching this um around the the Austin race last year in October we’ve seen over 75,000 uh Williams fans actually claim a grid pass and continue to be engaged with the program so it’s definitely been you know an incredible way to get people introduced to this space um and we you know through the fan zones we see we definitely see an uptick um every time we do one with Williams um you know just over the course of that week and and the weeks following that for claims and and grid pass claims yeah now before I let you go I want to talk about something outside of sports Kraken uh launched its first consumer campaign a few months ago and and I just want to check in on that because we we spoke with Kraken at the time when it launched um how is that going so far especially at this time when you see a real comeback for crypto you see people interested again but when you when you launched it it wasn’t quite the case I think people were still very skeptical after what happened uh with the last collapse so so talk about where we are so far with that yeah I mean this goes back to we’ve been around for 12 years now so we’ve seen a number of these different Cycles um the campaign for us was see what crypto can be and I think you know as we continue to develop uh that messaging and further the mission you’ll see a development of or a progression of that of that messaging you know as we continue to to try to scale that mission so uh we remain focus on client education it’s a pillar for the campaign um you know we continue we have a learn Center that has been refreshed a couple months ago that’s a great resource for people to learn about crypto and I think you know as one of the the the most tenur stewards in the space um and as large as we are I think we we owe it to to everyone um you know in line with that mission to help further that in a way that is is a progression of that okay that’s all for crypto world today but we’ll be back again tomorrow and we’ll see you then

CNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what’s ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today’s show, Lou Frangella, head of brand partnerships at Kraken, discusses why the crypto exchange is looking to Formula 1 fans to boost crypto adoption.

Chapters:
00:00 – CNBC Crypto World, May 9, 2024
0:25 – Bitcoin flat
0:40 – The headlines
5:05 – Lou Frangella of Kraken

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Robinhood’s crypto transaction revenue soars 232% from a year ago: CNBC Crypto World