The firm made the declaration in an initial public offering filing made to the U.S. Securities and Exchange Commission on July 1. Robinhood revealed that that the meme-inspired joke token accounted for 34% of its cryptocurrency transaction-based revenue in the first quarter.
Dogecoin-derived income accounted for 6% of the trading firm’s overall revenue for the period, while crypto as a whole made up 17% according to CNBC.
Robinhood has seen its user base explode this year as the crypto bull market lured in new traders. Over six million new accounts were opened on the platform within the first two months of 2021.
Doge dumps as Elon pumps
Robinhood acknowledged that its business could be hurt if the markets for Dogecoin deteriorate or if the price of DOGE declines, “including as a result of factors such as negative perceptions of dogecoin or the increased availability of dogecoin on other cryptocurrency trading platforms.”
The news outlet reported that overall, crypto assets on the platform skyrocketed in the first quarter on a year-over-year basis from $480 million to $11.6 billion. Total revenue increased more than 300% in the period to $522 million from $128 million a year earlier.
It has not all been plain sailing for the trading firm, however. On July 1, BeInCrypto reported that U.S. regulatory organization Financial Industry Regulatory Authority (FINRA) ordered Robinhood to pay a record $70 million fine. The penalty is for “significant harm” to customers relating to system outages that occurred during March 2020.
Robinhood’s IPO plans for June were hampered by regulatory hurdles from the SEC.
DOGE price outlook
Dogecoin itself has not reacted to Musk’s manipulation this time. DOGE is trading slightly over $0.24 at the time of press.
DOGE has dropped a further 8% over the past week and has dumped 67% since its May 8 all-time high of $0.731.