A $25 billion dogecoin whale lurks, however Robinhood CEO says ‘we don’t have vital positions in any of the cash we maintain’
‘Any cash that we maintain are for the needs of type of offering entry in holdings for our clients. We don’t have vital positions in any of the cash that we carry on a proprietary foundation or something like that.’
That’s Vlad Tenev, CEO of Robinhood Markets, talking at a “fireplace chat” on Thursday hosted by the favored brokerage platform, trying to dispel any lingering hypothesis that Robinhood could also be a so-called dogecoin
whale, sustaining an enormous stockpile of the cryptocurrency for its personal profit.
Again in February, digital-asset fanatics grew to become briefly obsessive about hypothesis linking Robinhood to a dogecoin pockets deal with that was valued at round $2.1 billion.
The Wall Road Journal in February reported that it had recognized information that confirmed that an individual, or entity, owned about 28% of all of dogecoin in circulation — a stake value about $2.1 billion on the time.
That stake is presently value greater than $25 billion at dogecoin’s present worth of round 60 cents per coin, in keeping with CoinDesk knowledge, translating to roughly 42 billion doge, assuming the deal with didn’t accumulate or promote any cash since February.
Bloomberg quoted Tom Robinson, chief scientist and co-founder of Elliptic, as saying that his knowledge pointed squarely to Robinhood because the holder of the crypto cache. “It virtually actually belongs to Robinhood,” he mentioned. “The timing of its creation, and the creation of the addresses that it acquired funds from, match the timing of Robinhood’s help of dogecoin.”
Robinhood started providing dogecoin buying and selling to its clients in July 2018.
Robinhood’s new crypto-focused chief working officer, Christine Brown, who additionally was featured within the fireplace dialogue, mentioned that she needed to place a finer level on the brokerage’s function in crypto. “To place like a superfine level on it, on behalf of the agency, we don’t commerce, maintain or lend. We don’t participate in any exercise when it comes, you recognize, to cryptocurrency. The one factor that we do is we, on the route of our clients, purchase and promote on their behalf and custody in a segregated method,” Brown mentioned.
Tenev mentioned that Robinhood has been studying how to deal with a surge in demand for dogecoin on its platform, which has led to numerous outages on its buying and selling apps in current days. Bitcoin
and extra not too long ago dogecoin have been on the middle of a surge in curiosity in crypto property on Robinhood.
Dogecoin has risen greater than 12,500% thus far in 2021 and has gained almost 100% within the yr up to now. By comparability, the Dow Jones Industrial Common
is up about 12% and the S&P 500 index
has gained over 11% so far this yr.
Bullish doge buyers are hoping that the “Saturday Night time Dwell” guest-host look of Elon Musk, one of many largest champions of doge and the CEO of Tesla Inc.
might present a recent catalyst for the meme inventory.
Try Robinhood’s crypto fireplace chat right here:
Robinhood is planning to go public in some unspecified time in the future and has been attempting to bolster its relationship with clients months after its choice again in January to restrict buying and selling in some shares, together with GameStop Corp.
Robinhood has added tens of millions of consumers quickly, each on its conventional brokerage platform and in its burgeoning crypto unit, and that hasn’t come with out rising pains.
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