'CASHCAT' trader turns $800 into over $1 million on Robinhood's brand new blockchain

Major fiscal speech Robinhood launched its ain blockchain connected July 1 to determination stocks and bonds onchain. But the archetypal breakout deed is simply a cat-themed token that's generated a luck for early, fortunate punters.

CASHCAT, a memecoin named aft the mascot Robinhood utilized earlier it was Robinhood, has surged respective 100 percent connected Robinhood Chain successful the past 2 days, the Arbitrum-based web the brokerage switched connected astatine a London keynote billed "Robinhood Presents: The World Is Flat."

One aboriginal purchaser spent $838 connected 15.04 cardinal tokens astir 3 weeks agone and has since sold astir 13.5 cardinal of them for astir $917,600, according to onchain data, with the remainder worthy astir $133,700 arsenic of Asian day hours Thursday. That is simply a instrumentality of astir 1,250 times the archetypal stake.

It is not alone. A 2nd wallet turned $85 into 17.4 cardinal tokens successful 1 bargain and has realized astir $687,700 portion sitting connected astir $1.2 cardinal much connected paper.

The 5 astir profitable wallets person banked adjacent to $3.7 cardinal betwixt them, DEXScreener information shows. Every dollar of it came from idiosyncratic connected the different broadside of astir 12,300 merchantability orders.

The full happening stands connected shaky ground, however. CASHCAT carries a marketplace worth of astir $105 cardinal against astir $6.6 cardinal of liquidity successful its Uniswap pool, meaning it whitethorn not sorb adjacent a fraction of the holders trying to permission astatine once.

The token is down astir 12% implicit 24 hours and astir a 4th disconnected the intraday highest adjacent $145 cardinal it touched connected Wednesday, and merchantability measurement has edged past bargain volume, $29.1 cardinal against $28.9 million, crossed much than 30,000 transactions from astir 6,800 traders.

Robinhood did not make the token. CASHCAT's ain website describes it arsenic "fan fabrication with a ticker," a task built by outsiders astir the cat-with-cash logo the institution utilized successful its earliest days earlier rebranding. The utility, the tract says, "is cat."

Interestingly, connected July 2, the time aft the concatenation went live, Robinhood's main enforcement Vlad Tenev told CNBC that memecoins were mostly a dormant end, arsenic 'assets without inferior bash not service a lasting purpose,' and that tokenized real-world assets were the durable absorption for crypto.

However, days aboriginal connected July 7, arsenic CASHCAT climbed, helium posted connected X that portion the institution is gathering its concatenation to beryllium the champion for real-world assets, "it works large for memes too." He besides followed the token's account.

Meanwhile, Pump.fun, the Solana launchpad that created a roar successful highly short-term memecoin trading, announced connected July 8 that it had added enactment for Robinhood Chain tokens, letting users commercialized them without bridging.

"It's lone close that the starring app successful trading borderline supports everything that traders privation to speculate on," co-founder Alon Cohen wrote connected X.

While the commercialized is the benignant of communicative that draws radical in, it does not afloat amusement the buyers who bought aft a token had already gained respective 100 percent successful a day, oregon the ones inactive holding arsenic it retraces.

A token whose marketplace worth swung by tens of millions of dollars wrong hours tin instrumentality that worth backmost connected the aforesaid timescale, causing steep losses for traders who bargain astatine the top.

The memecoin frenzy is simply a mixed effect for Robinhood.

A caller blockchain needs transactions and wallets to look alive, and speculative trading delivers some faster than tokenized Treasuries do. The institution has spent months positioning the concatenation arsenic infrastructure for tokenized equities, with day-one integrations from decentralized speech Uniswap and oracle work Chainlink.

What arrived archetypal was a feline with a fistful of cash, and a main enforcement who spent a week arguing that this was precisely the happening crypto needed to outgrow.