Robinhood is emerging as a significant player in the cryptocurrency space, with a massive holding of 34 trillion Shiba Inu (SHIB) tokens, making it a dominant force.
Robinhood’s SHIB holdings have grown rapidly, increasing by 70.4 percent in just 20 days to approximately $279.85 million.

Arkham Intelligence has designated Robinhood as a dominant force in the cryptocurrency realm. The trading platform currently possesses 34 trillion Shiba Inu (SHIB) tokens. Furthermore, Robinhood claims the fifth-largest Ethereum (ETH) custodian position. Additionally, the platform boasts ownership of 122.412K Bitcoin, with a value nearing $3.2 billion.

Our identification of Robinhood as the owner of the third-largest Bitcoin wallet was widely covered.

But most coverage missed that we’ve also identified them as the owner of the 5th largest ETH wallet, holding $2.54B of ETH.

0x40B38765696e3d5d8d9d834D8AaD4bB6e418E489 pic.twitter.com/Sczj11uLlA

— Arkham (@ArkhamIntel) August 30, 2023

 

Notably, Robinhood’s holdings in Shiba Inu have experienced rapid growth. A mere 20 days ago, the company held approximately 20 trillion SHIB tokens, valued at around $197.4 million. In a matter of days, Robinhood has accumulated an additional 14.086 trillion SHIB tokens, increasing its total holdings to approximately $279.85 million. This remarkable 70.4 percent surge in holdings coincides with the public launch of Shibarium, Shiba Inu’s layer-2 scalability solution.

Robinhood BTC ETH SHIB Holdings

A closer examination of Robinhood’s wallets reveals that the exchange holds 34 trillion Shiba Inu tokens distributed across three wallets:

20,000,001,000,000 (20T) SHIb in 0x40B38765696e3d5d8d9d834D8AaD4bB6e418E489.
7,440,350,857,090 (7.44T) SHIB in 0x73AF3bcf944a6559933396c1577B257e2054D935 
6,592,415,828,070 (6.59T) SHIB in 0x2eFB50e952580f4ff32D8d2122853432bbF2E204.

Interestingly, the reopening of Shibarium appears to have impacted the Shiba Inu ecosystem. The platform has witnessed a 564 percent increase in wallet addresses and a 71.3 percent rise in transactions, resulting in 634,617 wallet addresses and approximately 700,000 transactions. This development might imply that Robinhood’s decision to acquire more SHIB tokens is a strategic move to capitalize on the token’s growing ecosystem.

While Shiba Inu has garnered significant focus, it’s essential to consider Robinhood’s Ethereum holdings. Robinhood currently ranks as the fifth-largest Ethereum holder, enhancing its position within the cryptocurrency sector. According to Arkham Intelligence, Robinhood possesses 1.721 million ETH, totaling $2.81 billion.

Binance’s Involvement with Shiba Inu

Binance displayed its interest in SHIB by incorporating Shiba Inu into its proof of reserve system. Binance maintains a net balance of 84.4 trillion SHIB tokens, equivalent to approximately $1.06 billion, with a reserve ratio of 102.4 percent for the Shiba Inu balances held by its users. This level of transparency has gained significance, especially in the aftermath of the FTX scandal, which revealed that the exchange did not maintain client assets at a 1:1 ratio.

Robinhood’s Acquisition of Shares from Sam Bankman-Fried

Robinhood is taking steps to repurchase shares worth $605.7 million that Sam Bankman-Fried previously owned. This move also includes acquiring 55 million shares that FTX co-founder Gary Wang jointly owned through Emergent Fidelity Technologies. The purchase agreement has been made in collaboration with the United States Marshal Service, as outlined in a recent filing. Consequently, with his trial scheduled for October, these assets are no longer under the control of Sam Bankman-Fried, who is currently facing criminal charges for fraud.

The Controversy Surrounding FTX’s Collapse

The collapse of FTX stands as one of the most significant controversies in the digital asset industry. Once the cryptocurrency sector regarded the exchange as a strong pillar, it exposed various fraudulent activities. This ultimately led to the arrest of former CEO Sam Bankman-Fried and several top executives.

As Sam Bankman-Fried awaits his impending trial, Robinhood has repurchased his $605.7 million worth of company stock. This buyback agreement also encompasses the 55 million shares formerly held by Bankman-Fried and FTX co-founder Gary Wang. The government seized these shares earlier in the year and acquired them through Emergent Fidelity Technologies Holding Company. The purchase arrangement has received approval from a US District Court this week.

The US Securities and Exchange Commission has officially disclosed the details of the purchase agreement through a filing. Following this development, Robinhood’s shares experienced a modest increase of approximately 3 percent at the beginning of Friday, trading at around $11.21 per share.

 

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Filed under: Bitcoin - @ September 2, 2023 2:12 pm