The fate of Robinhood, the highly regarded cryptocurrency and stock trading application, is inseparable from the fate of Dogecoin. Yes, according to the company itself, Elon Musk often launches meme cryptocurrencies, and the company submitted an application for listing on Thursday.
In the Robinhood prospectus issued by the US Securities and Exchange Commission, the company stated that in the first three months of 2021, a large part of its revenue will come from trading cryptocurrencies.
A large part of the operation revolved around Dogecoin. Robinhood said he was worried that the rocket would shut down before reaching the moon.
“If the demand for Dogecoin transactions decreases and is not replaced by new demand for other cryptocurrencies that can be traded on our platform, our business, financial condition, and results of operations may be adversely affected,” said in the outlook Wrote in.
Of course, robustness does not only depend on cryptocurrency transactions. With the rise of meme stocks such as GameStop and the Wall Street Bets subreddit, the company quickly attracted public attention.
Nevertheless, according to the prospectus, cryptocurrency provides a large part of the company’s revenue, thanks in large part to Dogecoin.
“Although we currently support trading in a portfolio of seven cryptocurrencies, in the three months ending March 31, 2021, 34% of our cryptocurrency trading revenue was attributed to Dogecoin transactions. In the three months ended December 31, this proportion was 4%, 2020.”
Other risk factors clarified by Robinhood include the possible regulation of cryptocurrencies. If customers are allowed to deposit or withdraw cryptocurrencies in the future (not just Is buying and selling them), the loss of client funds due to anticipated accidents, for example, “typographical errors”.