Stock and crypto trading firm, Robinhood, has revealed that Dogecoin contributed heavily to its revenue within the first quarter of 2021. The firm declared this in the IPO application it made to the US SEC on the first day of July. According to its reports, Dogecoin’s contribution represented 34% of the firm’s revenue within the first quarter.
Robinhood hopes to launch its Initial Public Offering (IPO) after the July 4 Independence holidays. However, the US Securities and Exchange Commission’s investigation may stall its planned launch, making it to shift the launch date further. Actually, the crypto and stock trading firm planned to begin its public listing by March but had to postpone it until this month. If its application is approved by the US SEC, Robinhood will be listed on the NASDAQ stock market under the “HOOD’ ticker. Reports indicate that the firm plans to raise $100 million upon its public listing.
Robinhood’s User Base Increase in 2021
As expected, Robinhood’s user base peaked sporadically from 401,000 last year, adding 6 million users more. The GameStop stock and Dogecoin saga earlier this year saw more users join the platform. GameStop stock promoted by a subReddit group, WallStreetbets, peaked at $285 this year from a mere $5, giving it an over 2000% price pump.
Unfortunately, Robinhood delisted the stock causing it to receive criticism from users around the globe. Dogecoin was also delisted after reaching an all-time high of $0.74 following Elon Musk’s promotion. As of March 2020, the trading firm’s site was ridden with system outages causing users to lose money.
Robinhood Criticized for Novice Trader’s Death in 2020
A major highlight during that period was the case of a 20-year-old novice trader, Alexander Kearnes who committed suicide after his account on the firm’s site read -$700,000. Robinhood was heavily criticized for this. Robinhood boasts of a staggering population of young people as it claims the platform was created to democratize the financial markets, which then endeared it to young traders. The unfortunate event did not cause a strain on its numbers as it has been growing since then.
The millennial trading firm has admitted that if the demand for Dogecoin reduces, it could affect its business. Although the price of the meme-based token has plunged massively to a low of $0.24, the demand for it is still high. At least, until Tesla’s CEO Elon Musk deserts it. Meanwhile, an attempt by the billionaire to cause a price spike was futile. The prospects on Dogecoin are still high even now that Elon is looking to find great value for it.
In 2020, the total value of crypto assets recorded on the platform stood at $480 million. However, the value has multiplied since then. Robinhood’s crypto assets increased to a whopping $11.6 billion within the first quarter of 2021. Its revenue also increased by over 300% from $128 million to more than $522 million. In light of the events that occurred during the pandemic, Robinhood was slammed with a $70 million fine by FINRA, a US private and non-profit regulatory body.
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