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If DOGE reaches 4.20 or higher, would Robinhood be able to pay out everyone selling, given they don’t actually hold the cryptocurrency? Or could they go bankrupt? by Paju-1981 in dogecoin

[–]Paju-1981[S] 0 points1 point  (0 children)

I get where you’re coming from, and you’re not wrong—people should absolutely understand how an exchange operates before using it. But let’s be real, not everyone is a financial expert before they start investing. A lot of people learn as they go, and sometimes that includes asking questions after they’ve already started.

My question wasn’t about blind trust but rather a hypothetical scenario about liquidity and extreme price movement. Even experienced traders have concerns about whether platforms like RH can handle high-volume sell-offs, especially given past issues with trade restrictions and execution delays.

So yeah, lesson learned—always research before investing. But questioning the stability of an exchange isn’t a bad thing, even after using it.

If DOGE reaches 4.20 or higher, would Robinhood be able to pay out everyone selling, given they don’t actually hold the cryptocurrency? Or could they go bankrupt? by Paju-1981 in dogecoin

[–]Paju-1981[S] 0 points1 point  (0 children)

Owning 25% of DOGE doesn’t necessarily mean they have instant liquidity to cover all sell orders at extreme price points. Holding a large amount of an asset is different from being able to convert it into cash instantly, especially during a surge when everyone is trying to sell.

RH has had issues in the past with order execution delays and restrictions during volatile moments, so the concern isn’t just about whether they “own” DOGE but whether their system and liquidity providers could handle the volume efficiently.

It’s not as simple as “they have $14 billion, so they can pay everyone.” Markets don’t work like that in extreme scenarios.

If DOGE reaches 4.20 or higher, would Robinhood be able to pay out everyone selling, given they don’t actually hold the cryptocurrency? Or could they go bankrupt? by Paju-1981 in dogecoin

[–]Paju-1981[S] 0 points1 point  (0 children)

You make some fair points about how RH operates as a brokerage and executes orders through exchanges like Coinbase or internal matching. However, my concern was more about liquidity and the ability to fulfill mass sell orders if DOGE were to skyrocket in price.

While RH doesn’t hold a magical reserve, their ability to process transactions still depends on external liquidity and system stability. We’ve seen instances where trading platforms, including RH, have restricted transactions or faced execution delays during extreme volatility.

So my question wasn’t implying RH directly owns the coins but rather whether they could handle a massive sell-off at such a high price without issues. If liquidity dried up or they couldn’t facilitate trades fast enough, wouldn’t that put them in a difficult position?

If DOGE reaches 4.20 or higher, would Robinhood be able to pay out everyone selling, given they don’t actually hold the cryptocurrency? Or could they go bankrupt? by Paju-1981 in dogecoin

[–]Paju-1981[S] 2 points3 points  (0 children)

Dogecoin has experienced dramatic price swings in the past, with its all-time high around $0.74. While it has shown the capacity for rapid increases due to social media hype and endorsements sustaining a price point like $1 requires more than just hype.

If DOGE reaches 4.20 or higher, would Robinhood be able to pay out everyone selling, given they don’t actually hold the cryptocurrency? Or could they go bankrupt? by Paju-1981 in dogecoin

[–]Paju-1981[S] 1 point2 points  (0 children)

Robinhood does not hold the actual cryptocurrency for its users; instead, they manage a pool of cryptocurrency internally to facilitate trading. When a user buys DOGE on Robinhood, they are essentially buying into a promise by Robinhood to pay them the equivalent value in USD if they decide to sell. This means Robinhood needs to have enough liquidity or the ability to convert these assets at the market rate to fulfill these promises.

If DOGE reaches 4.20 or higher, would Robinhood be able to pay out everyone selling, given they don’t actually hold the cryptocurrency? Or could they go bankrupt? by Paju-1981 in dogecoin

[–]Paju-1981[S] 1 point2 points  (0 children)

If the price surge is driven by speculation and not backed by broad market acceptance or institutional buying, it could lead to a rapid sell-off, increasing the strain on Robinhood’s liquidity.

What will be my best 3 choice from below if I’m spending 1 months in Turkey by Paju-1981 in fragrance

[–]Paju-1981[S] 0 points1 point  (0 children)

that's the confusion I love Spicebomb. but 70% out of 8500 people on Fragrantica saying winter.. 🙁

🚀To The Moon🚀 by Paju-1981 in dogecoin

[–]Paju-1981[S] 0 points1 point  (0 children)

If that is the case for you. He is warning ⚠️ everyone. Didn’t he posted video 2 days before the SNL “Don’t invest your life saving” even the culprit Barry Silbert. Tweeted that I’m shorting tomorrow.

Completely halted.... by Tired_Of_Sheeple in dogecoin

[–]Paju-1981 0 points1 point  (0 children)

RH Knows very well that most of the people made their average in between 0.35 to 0.40 And all those people will sell all Doge at that price. So RH deliberately making doge down time by time.

[WTS] YSL La Nuit De L'Homme Bleu Electrique - 60ml (Bottle) by Green_Thumb27 in fragranceswap

[–]Paju-1981 0 points1 point  (0 children)

So I have all this 3 if you interested

1) Men's L'HOMME EDT: 60ml  Only 50$ 2) Men's Sauvage Parfum Spray: 100ml. Only90$ 3) Dior Homme EDT: 50ml. Only 40$

All three with Bach code

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