Artemis Warns Robinhood Chain’s Biggest Success May Also Be Its Greatest Risk
Robinhood Chain is clearing greater than $800 million in every day decentralized change (DEX) quantity two weeks after launch, with meme cash doing a lot of the lifting. Artemis CEO Jon Ma warns that the community’s greatest power might turn into its greatest legal responsibility.
The layer-2 community runs on Arbitrum, dealing with trades sooner and cheaper than Ethereum itself. It launched July 1 to host tokenized shares and real-world belongings (RWA), but speculative tokens have dominated early buying and selling.
Meme Coins Drive Robinhood Chain’s Early DEX Volume
DefiLlama recorded roughly $819 million in 24-hour DEX quantity on Tuesday and $3.9 billion for the week. That determine measures the worth of tokens altering arms on the chain every day. The community briefly passed Ethereum in volume on Monday earlier than slipping again behind it.
Cash Cat (CASHCAT), a token constructed on Robinhood’s pre-launch inner identify, holds a $156 million market cap, per CoinGecko. Thinner performs like Robin Hood (FOX) doubled in a day on a market cap close to $2 million.
Ma runs Artemis, an on-chain analytics agency, and invested in Robinhood pre-IPO in 2019. In an open letter to CEO Vlad Tenev, he acknowledged the sturdy begin.
He counted 300,000-plus every day energetic addresses, $40 million in annualized charges, and $300 million in whole worth locked (TVL).
Still, he argued memes account for many buying and selling. He pointed to the 2024 meme coin class on Coinbase’s Base community, down 99% from peak by his rely. He additionally recalled 2021, when GameStop mania pressured Tenev to testify earlier than Congress.
“But meme cash lose folks cash and destroy belief…PLEASE Robinhood DO NOT construct a meme coin chain,” Ma cautioned.
Follow us on X to get the newest information because it occurs
Supporters Bet on Liquidity First, Utility Later
Not everybody agrees. Analyst Miles Deutscher known as Robinhood Chain one of many yr’s most compelling crypto narratives.
Trader Bark argued the meme wave previews what occurs when Robinhood’s retail base arrives onchain. Ma’s personal letter places that base at 27 million funded accounts.
“Tens of hundreds of thousands of individuals are one app replace away from collaborating in memes for the primary time.”
Arbitrum mentioned the community earned over $800,000 in income in seven days, annualizing close to $42 million. Its enlargement program routes 10% of that to the Arbitrum (ARB) ecosystem, and ARB price gained 16% this week.
Ethereum, in contrast, captures virtually none of that worth, a split analysts already debate.
Coinbase CEO Brian Armstrong backed positive-sum use instances within the debate, calling customers and liquidity the strongest moat. Grayscale analysis equally discovered the market now rewards fundamentals over meme hypothesis.
Whether meme cash show a gateway or a distraction might turn into clearer as soon as Robinhood connects its essential app to the chain. Until then, the community’s loudest critics and its greatest followers are pointing on the identical numbers.
The submit Artemis Warns Robinhood Chain’s Biggest Success May Also Be Its Greatest Risk appeared first on BeInCrypto.