Over the past year, Robinhood (HOOD), the popular stock brokerage app targeting younger investors, increased their net revenue 35% to $365M. That is good news, but their revenue isn’t trending in the right direction. The bad news is that quarter over quarter, their revenue from crypto dropped 78% to $51M. Crypto trading accounted for some 40% of the company’s revenue, the biggest driver of that being Dogecoin. Fees from Dogecoin trading was 62% of the crypto transaction revenue in the second quarter of 2021, and most of those transactions have gone away---Dogecoin just isn’t the memecoin it was last year.
Back at the time of their IPO, Robinhood warned that their revenue was largely coupled to the price and demand for Dogecoin trading. Since this time last year, the news Robinhood really profited off of has been Doge, /r/wallstreetbets, Gamestop, stonks, and stimulus checks. Most of those things are over.
On this news for Robinhood, the stock price dropped to $34.60, under the IPO price for the first time. Trying to get ahead of the news here, Robinhood has partnered with Burger King to give away $2.6M in Dogecoin. Customers that sign up for the Burger King Royal Perks loyalty program have a chance to win Doge, Ethereum, and Bitcoin after making a $5 purchase at Burger King. The odds of winning Dogecoin are much higher than the others.
Robinhood has not listed Shiba Inu coin yet.