Cryptocurrency trading app Robinhood gets rich with Dogecoin boom!

NDTV Gadgets 360 Hindi

Dodgecoin accounted for nearly 62 percent of the $233 million (about Rs 1,730 crore) revenue of Robinhood, the commission-free cryptocurrency trading app, in the second quarter of the year. In its earnings report to US officials, Robinhood, which launched its IPO last month, saw a record increase in its revenue in Q2 2021 compared to the same period last year. It was $5 million (approximately Rs 37.2 crore) last year while it has now gone up to $233 million (approximately Rs 17.33 billion). Dodgecoin gained popularity after tech tycoon Elon Musk endorsed it on social media and billionaire investor Mark Cuban backed it too.

In July, when the company began its initial public offering, it said in an IPO prospectus that DodgeCoin accounted for about 34% of cryptocurrency revenue in the first quarter, up from 4% in the fourth quarter of the previous fiscal year. And now, Dodgecoin’s share has almost doubled in the second quarter. The surge came with a flood of tweets by Musk in support of Bitcoin, the world’s oldest cryptocurrency, and DodgeCoin.

Robinhood told the US Securities and Exchange Commission that cryptocurrencies accounted for about 52% of all transaction-based revenue on the platform. It also said that a growing number of its new users prefer to make their first trades in cryptocurrencies, not equities.

“We are encouraged by the number of people accessing the financial system for the first time through Robinhood,” said Robinhood co-founder and CEO Vlad Tenev.
Although Robinhood, which allows investors to buy and sell major digital currencies including Bitcoin, Dogecoin, and Ethereum, brought commission-free stock trading to a growing number of new investors, it benefited immensely from the cryptocurrency boom. Robinhood’s business model is based on routing orders to market makers and taking a percentage of the order value.

The cryptocurrency has seen extremely volatile movements since the May market crash. While this has now recovered and the top coins are back at a satisfactory level, it is not yet certain whether the market is still stable. As of 20 August (3:12pm IST), the price of Dodgecoin in India was Rs 24.48.

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