With the FLI fines and the Congress reprimands on memes actions and gamified trading in its rear view mirror, Robinhood has become the largest traditional Crypto trading broker, especially the pieces even.
By Javier PazForbes staff
TThe 8th of the world The most precious crypto, 39 billion dollars (market capitalization), Dogecoin was in tears. In the past 12 months, the token, which represents nothing more than faith in the digital image of an adorable dog Shiba Inu, won 220%.
This is a wonderful news for Menlo Park, the Robinhood of CA, because the recent deposits of the dry revealed that the customers of the broker at a reduced price of the crypto held around 35 billion Dogecoin chips, about 24% of the whole of the offer in the memecoin circulation, worth around $ 8.8 billion today, but as much as the same part of the same, worth around 8.8 billion dollars today Hui, but as much as this $ 16.4 billion in December 2024.
Of course, Dogecoin is not the only millions of Crypto Robinhood customers like trading. The broker is now the main traditional brokerage company for digital assets and is starting to challenge the domination of the crypto whores of whores like Coinbase. According to the results of the fourth quarter of Robinhood, published yesterday, cryptocurrencies were the number one income generator of the company representing $ 358 million in its $ 1.01 billion in net income from the fourth quarter, or 35% . For the full year 2024, total income increased by 58% to $ 2.95 billion, while net profit increased by $ 10 to 916 million.
On the twenty cryptos that the brokerage firm allows on its platform, there are five other same, Bonk, Shiba Inu, Dogwifhat, Trump Coin and Pepectoin, the cartoon frog sometimes associated with the alt-red. Bitcoin and Ethereum are also popular on Robinhood, but seven zombie blockchains, including Bitcoin Cash, Stellar and Tezos. These $ 1 billion tokens are actively negotiating but have almost no productive application other than acting as speculation vehicles.
“In the main application of Robinhood, we will continue to add (cryptographic active ingredients) and continue to speed up. In fact, we added seven new assets since the elections, “said co-founder and CEO Vlad Tenev, when the company’s profits are called. “We have engineering and infrastructure capacities to add tokens remarkably quickly.”
It is not surprising that the billionaire founders of Robinhood, In tetan and baiju LobbyWho launched their zero order brokerage in 2013 with the ostensibly noble mission to democratize the investment, once again adopted a junk food to feed their young cryptographic traders. Robinhood has long courted investors recruited by gaming its platform. Some 75% of its 25 million active accounts are held by millennium and generation Z investors. Like memes actions, whose trade often challenges traditional evaluation measures, memes parts go further – it There are no real assets or fundamental, the final point. How to estimate the prospects for future benefits of an image of a dog with a knitting ceiling which has a market capitalization of $ 595 million?
In 2020, Robinhood’s trade, the first approach to Think-Lest, put in hot water with regulators after one of his young merchants, a 20-year-old student from Naperville, Illinois, followed his life in Panic after the trading platform, and its inadequate customer service led him to believe that his trading options put him in the hole against $ 730,000. (Robinhood set an unjustified death combination brought by his family in 2021)
Robinhood was called to the Congress, which interviewed not only its business practices and safety, but also the source of its income. Since 2020, Robinhood has paid the dry more than $ 100 million in fines for a range of offenses ranging from customer deception, to the delivery of executions lower than jobs and exposure of accounting data To the pirates.
In 2024, some 66% of the $ 2.95 billion in Robinhood revenues came from what is called payment of the PFOF command flow, which is the practice of selling the professions of its customers to the desire funds More connected from Wall Street, notably Citadel Securities and Susquehanna International, both owners of Wall Street by mega-milliards. Robinhood’s zero commissions mask the fact that behind the scenes, the hedge funds mark and descend the orders of its customers, winning a small spread. Like master poker players sitting at a table with rubies, algorithmic traders of Wall Street as Citadel not only benefit from Robinhood customers, but use the large amount of retail business data for these purchases for Anticipate the movements and benefits of the market.
In the same way, Robinhood also sells his cryptographic professions to the hedge funds. After trading options, Crypto Trading has become the greatest source of transaction income from the broker. At Robinhood, the crypto is negotiated over 24 hours a day, compared to the company’s stock market products which are only negotiated 5 days a week. During peaks in crypto negotiation activity, such as T2 2021, Dogecoin and all crypto trading represented 32% and 41% of all transactions income respectively. During the last quarter ending on December 31, 2024, when Bitcoin pierced the $ 100,000 mark for the first time, the volume of Crypto transactions jumped.
Based on Forbes The analysis of disclosure of the Robinhood market, considerable parties of Robinhood’s cryptographic professions are sold to the Highty Trading Speculative Funds, notably Tai Mo Shan, Wolverine Trading and Wintermute. Thai Mo Shan is a subsidiary of the negotiation of high frequency trading fund funds from Chicago. In December 2024, Tai Mo Shan paid $ 123 million at the SEC for negligence deceived investors in the Terra USD offer, the stable algorithmic which imploded and collapsed in May 2022. Wintermute is an algorithmic negotiation company based in the United Kingdom specializing in crypto. Wolverine is a designer of accessories trading based in Chicago.
Do Robinhood’s enthusiastic coins merchants have the best prices when they buy and sell Trump Coin or adorable cryptocurrencies inspired by Shiba Inu?
Robinhood insists that its costs are the lowest compared to businesses like Coinbase, Crypto.com and Kraken. But do not expect transparency on its cryptographic commercial executions of any time. Unlike its broker regulated at the dry, the cryptographic unit of Robinhood is not required to give customers the best improvements or prices and there is no public disclosure of its cryptographic trading differences.
For Robinhood shareholders, which the company generates actions to sell income from Blue Chip companies like Apple or by selling absurd tokens to its traders with fresh faces, seems to have little importance.
“They allow you to exchange the crypto, the actions, the options and now they are potentially embarking on sports betting,” springs Mizuho Dan Dolev’s analyst.
Robinhood earned 15%yesterday. In the past 12 months, its stock has increased by 384%.