Robinhood says dogecoin accounted for 34% of crypto revenue in Q1

A visual illustration of digital cryptocurrencies Dogecoin and Bitcoin.

Yuriko Nakao | Getty Photography News | Getty Photography

Robinhood, the firm which introduced inventory trading to the tons, seen such enhance in dogecoin transactions this year that it included a particular possibility in is IPO prospectus tied to the cryptocurrency.

The firm stated in its IPO filing on Thursday that the meme-impressed token accounted for 34% of its cryptocurrency transaction-essentially essentially based revenue in the major quarter, when put next with a year earlier. That’s up from 4% in the fourth quarter.

Noteworthy of that enhance has coincided with a barrage of tweets about dogecoin from Tesla CEO Elon Musk, who on Thursday tweeted “Launch the Doge!”

Dogecoin-derived revenue accounted for six% of the firm’s total revenue in the length, whereas crypto made up 17%. The trading app presents seven rather just a few digital coins, at the side of bitcoin, ethereum, and litecoin.

Robinhood stated that its trade will likely be damage “if the markets for dogecoin deteriorate or if the worth of dogecoin declines, at the side of as a results of components equivalent to destructive perceptions of dogecoin or the elevated availability of dogecoin on other cryptocurrency trading platforms.”

Crypto trading, which used to be first launched on Robinhood in 2018, has ballooned in the old couple of years. Robinhood makes money in crypto by routing orders to market makers that the firm says offer “aggressive pricing” and taking a share of the portray worth.

Overall, crypto sources on the platform multiplied by 25 cases in the major quarter, year-over-year, from $480.7 million to $11.6 billion. Complete revenue elevated 309% in the length to $522 million from $128 million a year earlier.

Nonetheless scaling has at cases confirmed problematic, in line with the filing. As an illustration, partial carrier outages and degraded carrier all the plot in which through cases of high crypto trading volume were a subject in mid-April and early Would perhaps per chance presumably.

A equivalent to PayPal, which doesn’t permit its prospects to switch crypto holdings to other digital wallets, Robinhood doesn’t let users deposit or withdraw cryptocurrencies into or out of the app, though it stated it can add such a characteristic down the line. 

While Robinhood doesn’t title any opponents in the filing, the firm acknowledges that it operates in “highly-aggressive” markets alongside “sever worth brokerages, established financial abilities corporations, endeavor-backed financial abilities corporations, banks, cryptocurrency exchanges, asset management corporations and abilities platforms.”

Besides to PayPal, Coinbase, which went public earlier this year, and Sq.’s Cash App are two well-liked services used by U.S. shoppers to steal and sell cryptocurrencies.

WATCH: Robinhood tops CNBC’s 2021 Disruptor 50 checklist

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