In its latest IPO filing, Robinhood — the company instrumental in popularizing stock trading in recent years — acknowledged the significant growth in dogecoin transactions it has seen this year.
According to the company, the meme-inspired cryptocurrency accounted for 34% of its crypto-based revenue during the first quarter of this year. It jumped to significant heights, considering dogecoin was responsible for only 4% of the revenue kind during the fourth quarter of last year.
Moreover, Robinhood also noted in its filing that the growth came following a barrage of tweets about the digital asset from Tesla and SpaceX Chief Executive Officer Elon Musk who on Thursday made his latest dogecoin-related tweet when he said, “Release the Doge!”
Could be hurt by dogecoin
The joke cryptocurrency, which was introduced back in 2013, accounted for 6% of Robinhood’s overall revenue in the same period. Overall, crypto made up 17% of the total revenue the company made during such a span of time.
It is important to note that the trading app offers seven different digital coins including bitcoin, ethereum and litecoin.
With the level of impact the asset has, Robinhood said its business could be hurt if the markets for dogecoin deteriorate or if the price of dogecoin declines.
Such circumstances, according to the company, would happen because of factors like negative perceptions about the altcoin or its increased availability on other cryptocurrency trading platforms.
Crypto assets skyrocket
During the last few years, crypto trading, which Robinhood introduced back in 2018, grew exponentially and the company makes a profit from it by routing orders to market makers that it says offer competitive pricing and taking percentage of the order value.
Crypto assets on the platform, during the first quarter, skyrocketed on a year-over-year basis, from $408.7 million to $11.6 billion. During the same period, total revenue also increased, from $128 million a year earlier to $522 million.
Image courtesy of Cointelegraph News/YouTube
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