Robinhood Warns Its Crypto Business Is Heavily Reliant on Dogecoin

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The company says a “substantial portion” of recent revenue growth has come from Dogecoin trading. Dogecoin was developed in 2013 as a way of poking fun at Bitcoin, but has since evolved into a crypto behemoth. It’s now the sixth-most valuable cryptocurrency, with a market capitalization of nearly $33 billion.

In January, Robinhood established itself as the app of choice for investors looking to trade stocks-as-memes (think Gamestop, AMC, and Blackberry—ailing companies that retail traders could get together and pump artificially). Dogecoin was a natural pivot for many of those investors; at the end of the month, the price shot from around $0.008 to $0.03.source