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- Dogecoin accounted for 34% of Robinhood's crypto-trading revenue in the first quarter, its IPO filing shows.
- The investing app noted in the filing that declining interest in dogecoin is a risk to its business.
- Robinhood also said its business could be adversely affected if the price of dogecoin declines.
- See more stories on Insider's business page.
Dogecoin accounted for a "substantial" portion of the recent growth in Robinhood's net revenues earned from cryptocurrency transactions, the company's IPO filings show.
The meme token made up 34% of Robinhood's cryptocurrency transaction-based revenue during the first quarter of 2021, as compared to 4% for the three months ended December 31, 2020. Cryptocurrency transaction based revenue made up 17% of Robinhood's total revenue for the three months that ended March 31, 2021, the company said in its S-1 released Thursday.
Robinhood also listed a decline in customer interest in dogecoin as a potential risk to the company's business.
"…In addition to the factors impacting the broader cryptoeconomy described elsewhere in this section, RHC's business may be adversely affected, and growth in our net revenue earned from cryptocurrency transactions may slow or decline, if the markets for Dogecoin deteriorate or if the price of Dogecoin declines, including as a result of factors such as negative perceptions of Dogecoin or the increased availability of Dogecoin on other cryptocurrency trading platforms," the company said.
The decline in dogecoin interest is just one of the many risks that the mobile brokerage app lists in its paperwork for its hotly anticipated initial public offering.
Last week it was reported that the SEC has slowed Robinhood's IPO process to spend more time looking at the app's cryptocurrency business.
Dogecoin climbed as much as 7% to $0.2573 Thursday morning after Elon Musk tweeted two references to the meme cryptocurrency. It currently trades around $0.2478.