In its latest IPO filing, trading app Robinhood said Dogecoin made up 34% of its entire cryptocurrency transaction-based revenue in the first quarter of the year. This represents a 4% increase from Dogecoin revenue the company recorded in the fourth quarter of 2020. Dogecoin-derived income accounted for 6% of the company’s overall revenue in Q1, while cryptocurrencies made up 17%.
Overall, cryptocurrency assets on Robinhood grew significantly in the first quarter on a year-on-year basis, rising from $480 million in 2020 to $11.6 billion in 2021. The company’s total revenue increased 309% in the period, rising from $128 million in 2020 to $522 million in 2021.
According to the IPO filing published on 1 July, Robinhood’s business could be hurt “if the markets for Dogecoin deteriorate or if the price of Dogecoin declines.” This includes price drops that happen as a result of negative media perception or the increased availability of Dogecoin on other cryptocurrency platforms, the company explained.
Robinhood also acknowledged that it operated in a “highly competitive” market. Aside from competing with cryptocurrency exchanges, the company also has to operate against discount brokerages, established financial technology companies, venture-backed fintech firms, banks, and asset managers.