Early investors and nine-year-old users shouted at Robinhood: don't use meme chains
Source: Artemis Big Fundamentals
Author: Co-Founder/CEO of Artemis Jon Ma
Compiled and organized by: bitPushNews
Why tokenized stocks (not memes) will help Robinhood achieve more than $10 billion in revenue by 2030.
Robinhood Chain achieved a rapid start in less than a month and is committed to democratizing finance for all.
Daily active addresses > 300,000
Daily spot DEX trading volume > $1 billion (3rd among all blockchains)
Stablecoin supply > $300 million
Robinhood Chain's annualized daily processing fee revenue of +40 million
Total Locked Value (TVL) > $300 million (driven by Morpho, Ethena, Uniswap, etc.)
I used Whale Rock (a long and short strategy hedge fund) to invest in Robinhood in the front round of the IPO in the 2019 era, and followed Coinbase's IPO roadshow in 2020.
I founded Artemis to let people focus on investing in real long-lasting assets in cryptocurrencies and stocks rather than hyping up memes.
When I opened my Robinhood wallet last week, I was both shocked and saddened because I discovered that I can actually only trade memes.
And just 3 days after buying the tiny $CASCHAT, I was airdropped a bunch of random and meaningless tokens (including one called “Pointless Coin”).
Yes, Robinhood now ranks 3rd in spot DEX trading volume.
However, most of DEX's trading volume is still mainly composed of memes (animal memes, Vlad and Robinhood-themed memes, or ordinary memes).
Please don't set up a meme coin chain with Robinhood.
For Robinhood Crypto, there are many lessons to be learned from Coinbase's Base chain, as Base is still a much larger blockchain today.
Brian Armstrong (CEO of Coinbase) even further reiterated in his response the idea of leading people to real and enduring usage scenarios.
I understand this temptation because memes are an excellent way to attract early users and partners that drive liquidity and volume (“because of fascination, stay for real scenarios”). Large independent projects like Aerodrome have been able to thrive; they have dominated the volume of transactions on Base and established a true business model.
But memes can make people lose money and destroy trust.
Just look at those Base memes that were launched in early 2024. They have dropped another 90% this year (down 99% from their peak in early 2024).
Meme coins aren't long-lasting; they hurt customers and further alienate retail investors from the blockchain.
Furthermore, meme coins on the Robinhood Chain will reinforce Wall Street and hedge funds' stereotype of Robinhood, that is, Robinhood is still the “meme stock trading app” involved in the GME/meme stock frenzy in early 2021. Tweets like this aren't helpful:
It's hard for Wall Street to understand Robinhood. Don't double bet on things that hurt your brand image in 2021.
Instead, focus on the Robinhood wallet, as well as the Arcus (founded by the former dYdX team and an early leading perpetual contract DEX veteran) ecosystem and tokenized stocks. I love that Arcus now allows anyone in the world to trade spot tokenized stocks globally.
These stocks have “only gone up and not down” over the past decade.
Please focus your efforts on real-world assets (RWA) on the Robinhood Chain to broaden financial channels to more and more investors so they can trade stocks and pre-IPO companies. Teams like RWA.xyz and Artemis would be more than happy to help highlight these use cases.
Robinhood's biggest bearish forecast (Bear Case) is that the US market is completely saturated, with 27 million deposit accounts, while Wall Street predicts only 31 million to 32 million deposit accounts by fiscal year 2028, which is not an explosive increase.
My positive prediction for Robinhood (Bull Case) is to attract more than 100 million international investors, who can now invest in RWA, forecast markets, stablecoins, listed companies, and pre-IPO stocks through Robinhood Chain, and use this as the top of the Robinhood App's early user funnel.
The market has a real demand for 7x24 hour tokenized stocks — take a look at Trade.xyz on Hyperliquid. People mainly trade stocks like SK Hynix (SK Hynix) there. The company has real revenue of $68 billion, which is a real business that people want to get involved in.
If you go through the Robinhood Chain, assume that Robinhood grows to 100 million monthly active users (MAU) in 2030, and the current ARPU (average revenue per user) is around $171. Let's say international users have a lower ARPU because they pay Chain Fees (Chain Fees) rather than transacting through the Robinhood App, which has a higher commission rate. Let's say their ARPU is $100.
thenConsumer revenue will reach $10 billion in 2030 alone, which will surpass Wall Street's revenue expectations of $8.78 billion for fiscal year 2029.
Vlad and Johann,You have the chance to deliver on the promise of cryptocurrencies — making financial services accessible to everyone by tokenizing assets.
Please don't screw it up by turning Robinhood into a meme coin chain.
Wall Street, your customers, and the world will thank you for this.
Sincerely,
Existing users since 2017
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