DOGE Accounted For 34% of Robinhood’s Crypto Revenue in Q1
- Dogecoin-derived income accounted for 6% of the company’s total revenue in Q1 2020.
- Robinhood noted that it’s business could be hurt if the markets for Dogecoin deteriorate.
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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.
- Twitter CEO Elon Musk changed the social media platform’s iconic blue bird logo with that of the famous meme cryptocurrency on Monday, causing a 25% surge in DOGE price.
- The icon change was made only a couple of days after Elon Musk tried to dismiss a $258 billion lawsuit that alleged he had used his social media presence to manipulate the price of DOGE.
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- The U.S. Department of Justice has seized close to $470 million in Robinhood stock, and an additional $20 million in U.S. currency, as part of its criminal case against Sam Bankman-Fried.
- Lawyers for SBF argued last week that the Robinhood shares were bought legitimately by SBF, using money borrowed from Alameda, and that he was relying on them to fund his defense.
- Lawyers for SBF are seeking to block debtors from taking control over $450 million in Robinhood shares, arguing that SBF was relying on his stake to fund his criminal defense.
- Another argument was that SBF had legitimately bought the shares using money borrowed from Alameda Research, one of the few loans that was well documented in the company.