Ok so today I was watching Meet Kevin and he mentioned how Robinhood had the lowest fees for trading even compared to Coinbase. This is true.
So it got me thinking about why, but it turns out I already knew why.
That massive wallet that holds all that Doge that we speculate is the Robinhood wallet. Remember, not your wallet-not your coin. There’s only one wallet for millions of Doge holders.
So what is happening when you’re buying and selling Doge on Robinhood? Behind the scenes? The wallet only continues to accumulate more Doge, usually in massive blocks. Over time, as more people create a Robinhood account and start buying Doge from there the wallet will steadily grow. At a much quicker rate than it would shrink.
I believe the wallet only does this because more people “bought” Doge on their platform. See, with Robinhood, you’re only trading the value. Your trades are not going onto the blockchain ledger itself.
So when you SELL on Robinhood, do you think that they then take the Doge and sell it back into the market, or just give you your cash and transfer the “ownership” to the next person who bought Doge on Robinhood. Because computers and high frequency trading. Even if they couldn’t find a seller or buyer they would just fulfill it anyway (sound familiar?). You’re trading in a pool and your “Doge” is the water. (liquidity within the wallet)
Robinhood has created its own ecosystem for trading Doge, that is how they are able to do it for the lowest fees. When you buy/sell Doge on Robinhood’s platform it is off the blockchain and into their own market.
——They’re probably just pocketing the fees you pay to trade your Doge. Or they use the fees to pay for the blocks and pocket whatever is left over——-
It’s centralized within Robinhood. The wallet only buys/sells (on the blockchain) when they need to balance their books. But its doubtful they would run out of buyers/sellers within their platform so the wallet would not have to make as many transactions.
The wallet operates in large blocks.
If you sold 10 Doge the wallet itself would not sell 10 Doge it would just find someone within their platform to buy the rights to that “share” of their entire Doge wallet.
Buying Doge on Robinhood is the same thing as buying shares of a company, only the “company” is the wallet. And your Doge is, in a sense, in being traded on a dark pool.
Robinhood, in effect, is:
– Naked shorting Dogecoin (IOUs-you’re not buying real Doge, you’re buying the right to a part of the wallet, and again not your wallet not your crypto.)
– Trading it in “dark pools” (off the blockchain), and
– Manipulating Dogecoin’s TRUE volume/price,
—-ALL while (possibly) skimming fees off the top.
Doge on Robinhood = The first unofficial/official, “crypto index fund”.
It’s appreciating asset? REAL Doge.
If everyone just decided to paper hand their entire Robinhood “wallet” and buy REAL Doge, now THAT would be something to see. They would probably be force to liquidate all of that Doge, creating massive downward pressure. But everyone coming in to buy it after they left Robinhood would create massive upside as well. That would be nuts.
This is not financial advice and don’t think I’m telling you to sell/buy. I’m a .75 hodler on Robinhood myself. But I have been buying -real- Doge for quite some time as well (been ignoring the real Doge having fun trading on RH).
Thank you my friends please consider taking a moment to hit that like and subscribe button and I’ll see you in the next video.
EDIT:::Possible solutions:::: coinbase + ledger (cold storage device). Acquire real Doge and keep it safe in a ledger. Not financial advice. If you do not understand this process feel free to ask below in the comments I will reply and answer whatever questions I can and as best to my knowledge.