Does the addition of Dogecoin to Robinhood’s crypto exchange signal a directional change for the company?
As of July 16, you can now invest commission-free in Dogecoin on Robinhood Crypto. Robinhood Crypto is a cryptocurrency exchange available through Robinhood Markets, an investment platform targeting novice investors. Its target audience gives Robinhood a big responsibility to protect its customers and, so far, the company has played it safe by offering only arguably well-respected coins. So what business does Robinhood have supporting Dogecoin, which is essentially a running joke?
Robinhood is a quickly growing exchange. Prior to last week, it only supported investments in Ether and bitcoin, but on July 12, the company announced the addition of bitcoin cash and Litecoin. Yesterday’s Dogecoin announcement brings the count up to five.
To be fair, though Dogecoin was started as a joke, it has been around since 2013 and has a market capitalization of more than $364 million (down from $1.2 billion in January 2018). The ERC20 token has also attracted a dedicated online community. The Dogecoin Foundation has lent support to various charitable fundraising efforts, such as famously helping the Jamaican bobsled team compete in the 2014 Winter Olympics, and raising over $11,000 for clean drinking water in Kenya, also in 2014 (though, the philanthropic activity seems to have fallen off a bit in recent years).
Still, the news indicates a notable departure from Robinhood Crypto’s heretofore Coinbase-approved offerings.
Robinhood currently offers its crypto services in 17 US states but is working toward expanding its availability. Additionally, though only 5 coins are available to buy and sell, it is also working on expanding its coin offerings, and supporting coin transfers.