Krutika Adani
As per the FIT-21, if any party holds more than 20% of the supply, the crypto comes under the purview of the SEC and is a security. This may block a DOGE ETF in the future as Robinhood holds a significant amount of DOGE.
According to analyst Beth Kindig, a drop in Robinhood’s volumes has a direct impact on Dogecoin trading volumes, signifying high DOGE concentration on the exchange.
Robinhood’s 62% trading volume comes from Dogecoin alone. This also helps Dogecoin as it creates liquidity for the top memecoin.
Like other exchanges, Robinhood is too charged by the SEC under various sections. Its seizure or ban might result in a total crash for Dogecoin markets.
In the future, if Dogecoin traders continue trading with Robinhood, it might block the prospects of a Dogecoin ETF while increasing the systemic risk on the top memecoin.