Robinhood, once embroiled in controversy over its handling of meme stocks and gamified trading, has emerged as a leading traditional broker for crypto trading, particularly in meme coins. The company’s fourth-quarter results show that cryptocurrencies generated $358 million in revenue, accounting for 35% of the firm’s net revenues.
Dogecoin, the eighth most valuable crypto with a market cap of $39 billion, has seen a significant gain of 220% over the last year, with Robinhood customers owning approximately 24% of its circulating supply. Other popular memecoins such as BONK and Shiba Inu are also traded on the platform.
However, critics argue that Robinhood’s zero-commission model masks the fact that it is earning a small spread on customer orders by selling trades to Wall Street firms like Citadel Securities. This practice, known as payment for order flow, has raised concerns about transparency and fairness in trading.
In 2024, 66% of Robinhood’s revenue came from PFOF, with crypto transaction volume surging during the recent surge in Bitcoin prices. The company has faced criticism from regulators and lawmakers over its business practices and safety record.
Despite the controversy, Robinhood’s CEO Vlad Tenev has stated that the firm will continue to expand its crypto offerings and accelerate its growth. As the market for meme coins continues to grow, it remains unclear whether Robinhood’s customers are getting the best prices for their trades.
Source: https://www.forbes.com/sites/javierpaz/2025/02/13/crypto-loving-robinhood-is-dogecoin-champion-as-it-continues-to-court-young-dumb-money