Robinhood is the largest DOGE coin holder. What are the potential risks?

Analysts have declassified the largest holder of the cryptocurrency meme Dogecoin, which soared in the last month due to Elon Musk’s tweets and investor interest on Reddit. According to media reports, a share of 29% of the total turnover of these digital coins belongs to the American investment service Robinhood, which was at the center of a scandal over the war between rioters with Reddit and traditional hedge funds.

Main facts

The fact that there are simply no other candidates for the role of the owner of the world’s largest electronic wallet with Dogecoin was reported by Bloomberg with reference to the blockchain data analysis service Elliptic. As an argument, the journalists cited the creation time of the wallet, which coincides with the moment Dogecoin was added to the Robinhood listing in July 2018.

The fact that a large investment service owns almost a third of all Dogecoin tokens has already been pointed out by analysts on the financial forums Reddit. This version was called very likely by the head of Tesla and SpaceX Elon Musk, who bought this cryptocurrency at the beginning of the year. The billionaire has repeatedly pointed out that:

1.  dogecoin is a rather promising crypto asset;

2.  the only problem is a large concentration in one hand.

He even offered his support to the big Dogecoin holders if they decided to get rid of their shares.

The owners of the Robinhood service themselves refused to confirm the belonging of the blockchain addresses with Dogecoin tokens to their ecosystem, citing security concerns. With Dogecoin’s market cap of $ 6.5 billion (as of Feb 18), the cryptocurrency on a wallet purportedly owned by Robinhood could be worth around $ 1.9 billion.

Ups and downs

In late January, Robinhood was caught in the middle of a scandal over the shutdown of the buy function of GameStop and several other companies that caught the attention of hobbyist investors on Reddit. By buying up these securities in spite of Wall Street hedge funds, which made billions from their fall, the Reddit community managed to raise their price by tens and hundreds of percent. However, the service found this behavior speculative and overloading its system. In response, Robinhood was accused of playing on the side of large investors and violating users’ rights to free trade, after which all restrictions were lifted.

Dogecoin is a Lightcoin blockchain-based cryptocurrency named after the Internet meme Doge. It was released on December 8, 2013. Despite the fact that Doge was based on a joke, it attracted a solid audience of crypto investors and miners due to its democratic image and fast enough mining. Doge to btc calculator can be easily found everywhere. The Dogecoin community has supported charitable initiatives on numerous occasions. In particular, crypto-like-minded people raised money for the Jamaican bobsled team to participate in the 2014 Winter Olympics held in Sochi.