Robinhood Files for US IPO, Says Crypto Transactions Accounts for 17% of Revenue
Godfrey Benjamin Jul 02, 2021 07:25
Robinhood has filed for a public listing, and crypto has a prominent feature on the platform's business.
Zero-commission financial trading platform Robinhood has filed for an IPO in the US amidst a growing sect of brokerages exploring public listings. Robinhood, known for charging zero commissions to its traders, has room for cryptocurrencies, a growing asset class that accounted for 17% of the firm’s total revenue.
While Coinbase was the first pioneering exchange that went public this year, several crypto trading platforms are now also considering betting big on the attempt to go public. Robinhood is next on the list of crypto backers to file an IPO, while the duo of Kraken and eToro are reportedly working out a game plan in this regard.
Per the Robinhood push to trade on the NASDAQ bourse, the platform’s public listing plans come amid a growth in the demand for cryptocurrencies from retail and institutional investors. As of the end of March, the company said it has $11.6 billion worth of assets in crypto held on behalf of its customers.
Robinhood markets cater to financial assets and other traditionally tradable commodities. However, crypto has found a way to climb up the ranks. The digital assets supported by Robinhood, Shiba Inu-themed coin, Dogecoin (DOGE) account for the largest percentage of total crypto revenue. Dogecoin-based revenue came in at 34% of all cryptocurrencies.
The firm believes that a decline in the demand for Dogecoin can impact its growth significantly. “If demand for transactions in Dogecoin declines and is not replaced by new demand for other cryptocurrencies on our platform, our business, financial condition, and results of operations could be adversely affected,” the firm said in its filing with the United States Securities and Exchange Commission (SEC).
Dogecoin’s popularity was fueled by Tesla’s Chief Executive Officer Elon Musk, who hides that the cryptocurrency is his best digital asset. Musk has even picked the cryptocurrency over Bitcoin and often shares tweets about the coin, a move many believe are promotional in nature.
Based on the coin’s popularity, its utility as a currency is beginning to build up.
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