Dogecoin Massively Boosted Q2 Revenue, accounted for 62 percent of crypto revenue- Robinhood
Dogecoin accounted for nearly 62% of the commission free cryptocurrency trading app Robinhood’s revenue. The revenue is of $233 million in the second quarter. Robinhood launched its IPO last month. Robinhood highlighted a significant increase in its crypto revenue in Q2 2021 when compared to the same period last year. It was from $5 million to $233 million. Dogecoin has gained wide publicity after tech tycoon Elon Musk endorsed it on social media. The Billionaire investor Mark Cuban also supported it.
In July, the company launched its Initial Public Offering. They said in the IPO prospectus that Dogecoin accounted for nearly 34 percent of cryptocurrency revenue in the first quarter. It is 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 Elon Musk against Bitcoin, and in support of Dogecoin.
Do you want Tesla to accept Doge?— Elon Musk (@elonmusk) May 11, 2021
Robinhood Reports on cryptocurrency Dogecoin
Robinhood said to 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 Etherum, 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), price of Dogecoin in India stood at Rs. 24.48.