A $ 25 Billion Dogecoin Whale Lurks But Robinhood CEO Says “We Have No Significant Positions In The Coins We Are Keeping”

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“All of the cash we maintain are used to present our prospects entry to the shares. We’ve no vital positions within the cash that we maintain on a proprietary foundation or something like that. ‘

That is Vlad Tenev, CEO of Robinhood Markets, talking at a “chimney chat” hosted by the favored brokerage platform on Thursday, attempting to dispel any lingering hypothesis that Robinhood could possibly be one thing referred to as a Dogecoin DOGEUSD, +1.97 % Whale who has a large cryptocurrency retailer for his personal profit.

Learn: SEC chief warns of rising monopoly energy amongst market makers at GameStop listening to

Again in February, digital asset fans have been briefly obsessive about hypothesis linking Robinhood to a Dogecoin pockets deal with valued at round $ 2.1 billion.

The Wall Avenue Journal reported in February that it had recognized information displaying that an individual or firm owned roughly 28% of all Dogecoins in circulation – a stake price roughly $ 2.1 billion on the time.

That stake is presently price greater than $ 25 billion, in keeping with CoinDesk knowledge, on the present worth of Dogecoin of about 60 cents per coin, which equates to about 42 billion doges, assuming the deal with hasn’t amassed or bought any cash since February.

Bloomberg quoted Tom Robinson, senior scientist and co-founder of Elliptic, as saying his knowledge clearly indicated Robinhood because the proprietor of the crypto cache. “It virtually actually belongs to Robinhood,” he mentioned. “The time of its creation and the creation of the addresses from which it acquired funds coincide with the time when Robinhood supported Dogecoin.”

Robinhood began providing Dogecoin buying and selling to its prospects in July 2018.

Robinhood’s new crypto-focused chief working officer Christine Brown, who was additionally represented within the chimney dialogue, mentioned that she needed to elaborate on the function of brokerage in cryptocurrency. “In a nutshell, we do not act, maintain, or lend on behalf of the corporate. We don’t take part in any exercise on the subject of cryptocurrency. The one factor we do is, on the course of our prospects, we purchase and promote individually on their behalf and of their custody, ”mentioned Brown.

Tenev mentioned Robinhood has discovered to take care of the rising demand for Dogecoin on its platform, which has resulted in plenty of outages in its buying and selling apps prior to now few days. Bitcoin BTCUSD, -0.58% and extra not too long ago Dogecoin have been the main target of elevated curiosity in crypto belongings on Robinhood.

Dogecoin has risen by greater than 12,500% up to now in 2021 and is up virtually 100% over the 12 months to this point. By comparability, the Dow Jones Industrial Common DJIA, + 0.07%, is up about 12% and the S&P 500 Index SPX, + 0.14%, is up over 11% up to now this 12 months.

Bullish Doge Buyers Hope Saturday Evening Stay Internet hosting Look by Elon Musk, One in every of Doge’s Biggest Champions and CEO of Tesla Inc. TSLA, -3.01%,
may present a brand new catalyst for meme inventory.

See: Elon Musk requested Twitter for concepts for ‘SNL’ sketches. Guess how that went?

Take a look at Robinhood’s crypto chimney chat right here:

Robinhood plans to go public sooner or later, and months after its resolution in January to limit buying and selling in some shares, together with GameStop Corp. GME, + 13.34%, tries to strengthen its buyer relationship..

Robinhood has shortly gained thousands and thousands of purchasers, each on its conventional brokerage platform and its burgeoning crypto entity, and never with out rising pains.