- Robinhood revenue has a significant portion from the crypto transaction specially Dogecoin
- In a recent IPO filing the exchange has revealed that DOGE has a significant role to play in terms of its income
- It is known that about 34% of revenue was attributed to DOGE, which estimates about $3.94 billion worth impact if demand for DOGE declines
- Although cryptocurrency transactions are significant for Robinhood, it don’t allows withdrawals
- Many concerns whether the users truly own the coins they acquire on Robinhood’s platform
Robinhood has recently filed an IPO with the United States Securities and Exchange Commission (SEC). The filing provided few insights that revealed some data about the exchanges revenue. Unsurprisingly, we have found that the exchange claims its significant part of revenue comes from Dogecoin (DOGE). The information indicated how essential is DOGEb for the exchange. Despite the importance, the exchange doesn’t allow withdrawals of the meme-based crypto asset.
Dogecoin has helped Robinhood revenue grow
In a recent IPO filing with the SEC, the exchange has claimed something interesting for the Dogecoin community. Robinhood claimed that a significant portion of its income from crypto transactions is attributable to DOGE transactions. Moreover, the exchange also claimed that if demand for DOGE transactions decreases, its revenue operations could be adversely affected.
Notably, the exchange supports seven digital currencies, among which 34% of the revenue was attributed to DOGE. If the popularity of the meme-based crypto declines, the exchange will face a significant decline in its revenue.
DOGE could impact $3.94 billion worth income
Following the documentations we have observed that Robinhood has not disclosed its revenue on each asset. However, the trading platform has revealed that it has a total of $80 billion in assets, among which $11.59 billion worth assets are virtual currencies.
Following the data, it is estimated that about $3,94 billion can be attributed to Dogecoin. Although DOGE has an essential role to play in Robinhood revenue, the coin still struggles with maintaining its platform when the community needs it the most.
Do Robinhood’s users own their coins?
The recent filing has mentioned the significance of digital assets. However, the filing has also shown how unworthy the platform is for its cryptocurrency users. The filing mentioned that if the exchange allows its users to deposit and withdraw digital assets, the users will have to face loss in terms of their assets, disputes, and other liabilities. Ultimately the factor could impact the businesses financial condition and results of operations.
Following the measures taken by the exchange users concern whether they actually own their coins. Moreover, many have deemed that the words of the exchange implies that their users are not skilled or intelligent enough to handle the crypto industry. However, some critics have highlighted that by taking such measures Robinhood intimates that it cannot handle the industry.
Is withdrawal access essential?
Withdrawals are the basic fundamentals of every digital assets exchange. Experts have considered it as the most significant tool available for customers. The withdrawal feature allows the users to have autonomy over their own money, which is one of the core principles of the crypto markets as a whole.
Robinhood has mentioned that in future it may offer such capabilities to its users. However, the scenario and decision has made the public image of the exchange at an all-time low. Still it’s challenging to say whether the exchange’s reputation will harm its operations. Despite failures, the exchange is bringing huge revenues.