Dogecoin’s future is tied to its performance on Robinhood

Robin Hood (NASDAQ:HOOD) currently offers investors the opportunity to buy and sell seven different cryptocurrencies. Dogecoin (CCC:DOGE-USD) Is one of them.

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Now with the financial services platform I would add digital crypto wallet, investors are looking for their favorite coin to participate. As a result, a petition is making the rounds asking Robinhood to make a list Shiba Inu (CCC:SHIB-USD). As of this writing, it has more than 470,000 signatures from a 500,000 goal.

As a result, Shiba Inu recently overtook Dogecoin by market cap. Has the investment world become like this? Shouldn’t cryptocurrencies be examined a little more closely?

In the meantime, I wonder what the next cryptocurrency will be to ask Robinhood for approval. But no matter what, Shiba Inu’s rise in this way can affect the performance of Dogecoin on the platform, and this has implications for the latter’s future.

Dogecoin has less of an impact

Robinhood announced its third quarter results on October 26th $ 371.4 million, down from $ 14.8 million the previous year.

Dogecoin continues to make a significant contribution to the transaction-based cryptocurrency revenue of the investment platform.

DOGE accounted for 40% of the $ 50.7 million in transaction-based cryptocurrency revenue in the third quarter. In total, that’s $ 20.3 million out of $ 266.8 million in transaction-based revenue from crypto, options, stocks, and other products.

So in the third quarter of 2021, Dogecoin accounted for 8% of transaction-based revenue, compared to 32% in the second quarter of 2021 and 7% in the first quarter of 2021.

The unpredictability of Dogecoin revenue generation on Robinhood is significant. So you can see why HOOD stock has struggled for most of its short life as a public company.

However, Dogecoin investors should also be concerned. If petitions like Shiba Inu are successful, DOGE could very quickly go from being a favorite dog on the block to being a follower.

The Robinhood waiting list is getting longer

According to a recent one wealth Article that Waiting list for the Robinhood crypto wallet skipped a million people. According to speculation, Robinhood will add more cryptocurrencies once the wallet is operational.

The article addressed the company’s expectations:

“‘We feel very, very good with the coins that we are currently offering on our platform,’ [CEO Vlad Tenev] said in the company’s latest conference call on Tuesday. ‘For all the new coins we add, we want to feel the same, if not better.’ ”

Investors should be able to see where this is going.

Robinhood wants to generate as much revenue as possible in a consistent manner. Unfortunately, adding more coins at random will only increase the unpredictability of Dogecoin and others’ earnings.

To make up for the chunks of this revenue, it would not be inappropriate for the company to charge listing fees from the organizations behind these cryptocurrencies. The process could be very similar to the path Canadian grocer In the past, suppliers have invoiced shelf space in their branches.

Somebody has to pay. So why shouldn’t it be Dogecoin and the rest of the cryptocurrencies?

In contrast, this could actually be good for Dogecoin. It could keep some of the DOGE wannabes out of the Robinhood dog pound, thus helping Dogecoin attract investor attention.

The conclusion to Dogecoin

The biggest problem Robinhood faces is that new crypto buyers may be saying, “If I can’t buy Shiba Inu here, I’ll go where I can to do my shopping.” Because of this, the rival token has another, indirect role in determining the future of Dogecoin.

The question is: what does Robinhood want to do with its cryptocurrency platform? Perhaps it is working towards a system where you invest a monthly amount, with the amount evenly divided among all the coins on its platform – similar to an exchange traded fund (ETF).

If so, Dogecoin could become part of a significant recurring revenue stream for Robinhood that DOGE itself would benefit greatly from.

It will be interesting to see how a Shiba Inu listing on Robinhood affects the price of Dogecoin. It just might spark more interest in the original meme coin, not less.

It’s good.

On the day of publication, Will Ashworth had no positions (either directly or indirectly) in any of the securities referred to in this article. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Publishing guidelines.

Will Ashworth has been a full-time investing writer since 2008. Publications he has appeared in include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in the United States and Canada. He is particularly fond of creating sample portfolios that will stand the test of time. He lives in Halifax, Nova Scotia.

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