Robinhood suspected of being Dogecoin’s biggest whale (DOGE)

Robinhood bets on new crypto services

Trading app Robinhood made headlines during the WallStreetBets affair, where it suspended trading in some stocks deemed too volatile. It had also restricted some features related to the Dogecoin (DOGE) at a time when it was exploding, sparking the ire of some users.

After the controversy, the platform announced on Wednesday that it planned to open cryptocurrency withdrawals and deposits. As a reminder, Robinhood users can currently buy cryptos and sell them, but not access them themselves, or send them on external wallets. Implementing these features would allow Robinhood to become a “real” exchange, and capitalize on its important user base.

 

Robinhood would be a Dogecoin whale (DOGE)

But what aroused the distrust of users was Robinhood’s announcement, which specifically mentioned the Dogecoin:

 

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The clarification came after an article was published by Bloomberg. The latter believed that Robinhood could be a Dogecoin whale, based on data from Elliptic. The media outlet stated:

“The creation of the initial wallet used for [Dogecoin] storagein June 2018 is the start of Dogecoin trading for Robinhood customers in July of the same year.”

Exchanges often have addresses containing very large sums of cryptocurrencies, so it’s not entirely a surprise. The problem is that the Dogecoin is already very concentrated. This address would control 29% of all Dogecoin in circulation, giving it considerable influence on the network. So mistrust has mounted in the crypto community, and Elon Musk himself has confirmed that he thinks Robinhood was the biggest whale in Dogecoin.

Dogecoin: too concentrated?

But Robinhood refused to reveal which addresses belonged to his services:

In any case, this confirms that fears related to the concentration of the Dogecoin cryptocurrency are justified, whether the biggest whale is Robinhood or not.

Could this sink the course of the altcoin? Apparently not, as long as the crypto community keeps talking about it. The DOGE had fallen since its record at the beginning of the month, to 0.087 dollar.

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