Robinhood Moves All 41B Dogecoin Into Single Wallet: What Could It Mean?

Popular retail stock and cryptocurrency brokerage Robinhood Markets Inc HOOD has moved all its Dogecoin DOGE/USD into a single wallet. With tensions in the crypto market already high after recent bankruptcy filings from big players like Voyager Digital and hedge fund 3 Arrows Capital, questions are circling. You can find our complete list of Three Arrows Capital creditors here.

What Happened: A series of transactions picked up by blockchain wallet tracker Dogecoin Whale Alert found Robinhood has moved all 41 billion DOGE it holds to one address.

All of the #dogecoin held by @RobinhoodApp on behalf of its investors has now been consolidated into a single wallet address. pic.twitter.com/GPxbarOlev

— Ðogecoin Whale Alert (@DogeWhaleAlert) July 21, 2022

The new wallet address now holds 31% of all DOGE supply. According to data from BitInfoCharts, the total value of these 41 billion DOGE coins was worth $2.8 billion at the time of writing.

Although Robinhood made no announcement regarding the movement of these coins, market participants speculated that the cold wallet migration was likely done as part of a reorganization or for reasons related to security.

As we supposed, @Robinhood finished migrating funds in their cold wallet to a new address. This is *probably* reorganization or due to some security reason.

The new address is DPDLBAe3RGQ2GiPxDzhgjcmpZCZD8cSBgZ, now holding 31% of the Doge supply.https://t.co/cNiGFV79Mr https://t.co/8hrat6A67p

— Mishaboar (@mishaboar) July 22, 2022

“Remember, when holding on any exchange/broker, your funds are held in a system of cold wallets and hot wallets,” wrote popular Dogecoin account Mishaboar on Twitter.

When you decide to hold #Doge in this way but you accept the conditions of the exchange/broker's Terms of Services.
In general, your #crypto on any platform is mostly uninsured, leaving aside a crime insurance which might allow an exchange to recover a portion of your funds.

— Mishaboar (@mishaboar) July 22, 2022

See Also: Celsius Bankruptcy Hearing: Lawyers Claim Users Gave Up Legal Rights To Crypto

Price Action: At press time, DogecoinDOGE/USD was trading at $0.069, up 2.6% over 24 hours.

Photo by Ink Drop on Shutterstock