Dogecoin accounted for nearly 62 percent of the commission-free cryptocurrency trading app Robinhood’s revenue of $233 million (roughly Rs. 1,730 crores) in the second quarter. In its earnings report to US authorities, Robinhood, which last month launched its IPO, highlighted a significant increase in its crypto revenue in Q2 2021 when compared to the same period last year — from $5 million (roughly Rs. 37.2 crores) to $233 million. Dogecoin has gained wide publicity after tech tycoon Elon Musk endorsed it on social media and billionaire investor Mark Cuban also supported it.
In July, when the company launched its Initial Public Offering, it said in the IPO prospectus that Dogecoin accounted for nearly 34 percent of cryptocurrency revenue in the first quarter, up from 4 percent in the fourth quarter of last financial year. And now, the Dogecoin share has almost doubled in the second quarter. The surge coincided with a barrage of tweets by Musk against Bitcoin, the world’s oldest crypto, and in support of Dogecoin.
Do you want Tesla to accept Doge?
— Elon Musk (@elonmusk) May 11, 2021
Robinhood told the US Securities And Exchange Commission that cryptocurrency accounted for about 52 percent of all transaction-based revenue on the platform. It also said that a growing number of its new users preferred to make their first trades in cryptocurrency and not equities.
“We’re encouraged by the number of people who are accessing the financial system for the first time through Robinhood,” said Vlad Tenev, co-founder and CEO of Robinhood.
Though Robinhood, that allows investors to buy and sell leading digital currencies, including Bitcoin, Dogecoin, and Ethereum, brought commission-free stock trading to a growing number of new investors, it benefited hugely from the cryptocurrency surge. Robinhood’s business model is based on routing orders to market makers and taking a percentage of the order value.
Cryptocurrencies have seen an immensely volatile run since May when the market crashed. Though it has recovered and the top coins are back to a satisfactory level, it is not yet certain whether the market has stabilised yet.As of August 20 (3:12pm IST), Dogecoin Price in India stood at Rs. 24.48.