- July 3, 2021
- Posted by: Stratford Team
- Category: Business
Robinhood Markets filed for an initial public offering and released its Form S-1 Thursday, in a highly anticipated move that gave investors a new look at the company’s finances.
One risk identified in the S-1 is the company’s heavy reliance on cryptocurrency transactions, especially given their inherent volatility. Dogecoin (DOGE-USD), one of the more fluctuant, newer cryptocurrencies, represented a substantial portion of the company’s recent revenue growth.
Dogecoin experienced turbulent growth in 2021, at one point rising over 400% in one week. With much of the increase in crypto transactions attributed to the digital currency, a fall in Dogecoin activity could spell trouble for Robinhood’s bottom line.
“If demand for transactions in Dogecoin declines and is not replaced by new demand for other cryptocurrencies available for trading on our platform, our business, financial condition and results of operations could be adversely affected,” the…
