Robinhood’s biggest business risks as it prepares for IPO

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Robinhood IPO filing reveals Dogecoin as one of its biggest risk factors.

Robinhood Markets filed for an initial public offering and released its Form S-1 Thursday, in a highly anticipated move that gave investors a new look at the company’s finances.

Dogecoin experienced turbulent growth in 2021, at one point rising over 400% in one week. With much of the increase in crypto transactions attributed to the digital currency, a fall in Dogecoin activity could spell trouble for Robinhood’s bottom line. “Future regulatory developments are impossible to predict with certainty,” the company said. “Changes in laws and regulations, or our failure to comply with them, may negatively impact our ability to allow customers to buy, hold and sell cryptocurrencies with us in the future and may significantly and adversely affect our business.”

 

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