A $25 billion dogecoin whale lurks, however Robinhood CEO says ‘we don’t have important positions in any of the cash we hold’



‘Any cash that we maintain are for the needs of type of offering entry in holdings for our clients. We don’t have important 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 “hearth chat” on Thursday hosted by the favored brokerage platform, making an attempt to dispel any lingering hypothesis that Robinhood could also be a so-called dogecoin
DOGEUSD,
+2.45%

whale, sustaining an enormous stockpile of the cryptocurrency for its personal profit.

Learn: SEC chief warns of growing monopoly power among market makers, retail brokers at GameStop hearing

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 Street 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 price about $2.1 billion on the time. 

That stake is presently price greater than $25 billion at dogecoin’s present worth of round 60 cents per coin, in line with CoinDesk data, 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 information pointed squarely to Robinhood because the holder of the crypto cache. “It nearly definitely 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 hearth dialogue, mentioned that she wished 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 realize, to cryptocurrency. The one factor that we do is we, on the course 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 plenty of outages on its buying and selling apps in latest days. Bitcoin
BTCUSD,
+2.29%

and extra lately dogecoin have been on the heart of a surge in curiosity in crypto belongings on Robinhood.

Dogecoin has risen greater than 12,500% to this point in 2021 and has gained almost 100% within the yr thus far. By comparability, the Dow Jones Industrial Common
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+0.49%

is up about 12% and the S&P 500 index
SPX,
+0.80%

has gained over 11% to this point this yr.

Bullish doge buyers are hoping that the “Saturday Night Live” guest-host look of Elon Musk, one of many largest champions of doge and the CEO of Tesla Inc.
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+1.48%
,
might present a recent catalyst for the meme inventory.

See: Elon Musk asked Twitter for ‘SNL’ sketch ideas. Guess how that went?

Try Robinhood’s crypto hearth chat right here:

Robinhood is planning to go public sooner or later 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.
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-0.25%
.

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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