On the day of the Nasdaq’s first crypto exchange debut, Dogecoin (DOGE) was the leader in the space, as the cryptocurrency’s markets dominated the entire day. The cryptocurrency surged more than 15% after the market’s opening and was one of the biggest gainers in the entire crypto space. As the trading session drew to a close, however, it seemed that the momentum would not continue, and the price began to slump. The day came to an end as the cryptocurrency’s price fell by 5%. In a world where momentum plays a major part in gaining price during the day, this was a bit of a troubling development.
The trading debut of Dogecoin (DOGE) on the Nasdaq Stock Exchange (NDAQ) has been a spectacular fail: the cryptocurrency has lost its spot to Bitcoin (BTC) as the most popular digital currency. The trading debut was supposed to show the cryptocurrency’s true potential, but instead the NDAQ outperformed its own expectations.
Robinhood, the popular stock trading app available for iOS and Android, made a splash this week when it went live on the Nasdaq. Shares of Dogecoin (DOGE)–a cryptocurrency with no intrinsic value–also made a splash when their debut on the cryptocurrency exchange Gemini ended in a sputter. DOGE, which has been a popular crypto since 2014, went on a wild ride this week. On Monday, DOGE was trading at $0.0041, but as the day went on it rose to $0.0065. On Tuesday, it was trading at $0.0093, but it fell precipitously after the Dogecoin Foundation’s social media manager, Jackson Palmer, tweeted that. Read more about robinhood dogecoin and let us know what you think.
On Thursday, Robinhood stock had a poor showing, plummeting sharply in a market debut that showed flat investor interest. $HOOD ended 8.4 percent down at the conclusion of the New York session, after falling as high as 12 percent earlier.
Earlier this year, the famous fee-free trading software acquired recognition. During the meme stock frenzy, when many nations were under lockdown, young and “unprofessional” traders flocked to it in unprecedented numbers.
Robinhood is being shunned by investors.
At the beginning of July, Robinhood submitted its Form-S1, disclosing its financials for the first time.
Total revenue for the year ending December 2020 was $959 million, according to the statistics. At $278 million, this is a 245 percent increase over the previous year. In the year to December 2019, net income was $7 million, compared to a loss of $107 million the previous year.
Similarly, statistics on its monthly active users revealed a positive trend. They were 17.7 million in Q1 2021, up from 8.6 million in Q1 2020.
However, the company acknowledged it was overexposed to Dogecoin at the time, claiming that the meme token accounts for 34% of its cryptocurrency transaction income (for its ‘crypto’ business). They cautioned that if DOGE demand decreases and isn’t replenished, they may be “adversely impacted.”
“Our company, financial condition, and results of operations may be negatively impacted if demand for Dogecoin transactions decreases and is not replaced by fresh demand for other cryptocurrencies accessible for trade on our platform.”
To the rescue, Dogecoin?
Unfortunately, Dogecoin’s performance since the local high in May has been disappointing. Since then, the contentious meme token has dropped 74%, and a failure to break above the 50-day moving average indicates that purchasers have moved on. At least for the time being.
DOGEUSDT is available on TradingView.com.
With a slew of notable crypto personalities continue to raise the alarm about Dogecoin’s weak fundamentals, one may question whether memes alone will bring DOGE back to its former glory.
Chris Larsen, the chairman of Ripple, does not believe it is possible. He recently compared DOGE investment to gambling.
The company previously said that it is looking for a Dogecoin replacement. So yet, nothing has come close to the magnitude of DOGE’s effect earlier this year. Shiba Inu, its closest competitor, is trading at a similar level.
Although they previously said that they were “adversely impacted,” it’s worth noting that bitcoin only accounts for 17% of their income.
The more pressing question is whether they will be able to withstand the upcoming regulatory scrutiny. Robinhood has been chastised for its handling of the GameStop/AMC debacle, and there’s also the problem of trading being “gamified.”
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The cryptocurrency bitcoin rose to a frenzied $20,000 in value in 2017, and in 2018, it’s been trading at or near that level in many markets. But how long can it last?. Read more about why dogecoin and let us know what you think.
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