Robinhood Chain Was Built for Wall Street. Then CASHCAT Happened!

Guys, RobinHood built a chain to bring Wall Street on chain. And crypto immediately used it to make cat meme coins. It's hilarious. I mean, the chain was built for tokenized stocks, real world assets, AI trading, DeFi, all of that. And within the first week, our big story here, an unofficial meme coin called CashCat. It reached a market cap of 200 million and helped RobinHood chain push past 560 million in DEX volume in a single day. Hilarious. But, it gives us a really good example of how a new blockchain attracts attention and why massive numbers don't always equal real adoption. So, let's take a quick look at what RobinHood actually built and what happened with CashCat in the first place and the actual numbers that matter here. Welcome to Underground Crypto, where we're all about raising your crypto IQ so

that you could potentially become a better speculator in this market. And no, this is not a hate on RobinHood chain video. We're All right, let's talk about it. So, RobinHood chain officially launched on July 1st. And it's Ethereum layer two built on Arbitrum technology. It uses ETH for gas and it's supposed to become the on-chain home for RobinHood tokenized stocks, lending, and perpetual futures, AI agents, and other financial products under RobinHood. The chain is also permissionless, meaning anybody can access it, build on it, or launch a token. Hence, how we ended up with CashCat. Before RobinHood ever became RobinHood, the founder apparently, allegedly, considered naming the company CashCat. Somebody took that piece of company history and turned it into a meme coin. Cuz why wouldn't you? CashCat is not an official RobinHood token. RobinHood did not launch it. But,

it had the perfect story, recognizable company, a forgotten name, cat mascot, and a brand new blockchain with very few established tokens that could really pull a lot of liquidity. It didn't have a lot of competition. [music] We're over on CoinGecko. I got CashCat pulled up. It went from 1/10 of a cent to nearly 20 cents. With around a billion tokens circulating, its market cap briefly came close to 200 million dollars. And I saw that somebody had turned $85 into $2 million or more. People made some serious dough with this. But no, I'm not suggesting anybody buy it, not financial advice ever here on this channel. But by the time a meme coin is getting this much attention, you kind of need to be extremely careful about chasing it in my opinion. What I find more interesting is what it

did for the Robinhood chain, the attention around Robinhood in general. And as we look at it right now for what it is right this very second at the time of recording, it went from July 3rd at .0029 to, you know, where it is now at .15, which is 15 cents. And this all really happened, if you look here, about July 7th to July 8th. So, within a little over a 24-hour period where $100 million came into it very quickly. If you got a piece of this, you definitely should be patting yourself on the back because this was one heck of a move if you were in early. And it just goes to show when chains are new, there's not a lot of competition for liquidity, things like this can happen. What is next? So, on July 8th, Robinhood chain

generated about $560 million in DEX volume, right? Decentralized exchange volume. And it recorded nearly 200,000 active addresses with about 140 of those being considered [music] new addresses. Hold on, I'm going somewhere with this, right? I know I'm throwing some numbers at you. Cash Cat reportedly generated about 98 million of that trading volume. So, it didn't create the entire 560 million, but it definitely helped to bring traders and liquidity and bots and attention to Robinhood's new chain. And this is what we need to understand about what these numbers actually mean. At the time I looked at the data, Robinhood chain had about 95 million in DeFi total value locked and around 270 million in stablecoins, 500 million in daily trading volume. Now, if all these numbers just kind of go in one ear and out the other, don't worry. I'm

about to tell you the three things that I'd be looking for moving on here with the Robinhood chain. That does not mean that 500 million of new money entered Robinhood chain on that day. Trading volume can include the same money being traded repeatedly in a cycle. Some people would even consider things like this maybe wash trading. Bots can make thousands of trades. Traders can rotate in and out of multiple tokens using the same capital. Active address numbers don't necessarily represent 200,000 individual people or 140,000 new wallets doesn't represent 140,000 new users because one person can have several wallets. Bots can control multiple address and people hunting airdrops or launching tokens can create a huge amount of activity without becoming a long-term user of the Robinhood chain. They move where the excitement and the hype and the money liquidity flows.

So, what does all of this mean for Robinhood chain? Is it already a major success? In my opinion, it's way too early to call it a major success or real adoption. Here are the three things that I'll be looking for, right? First, do the users come back to Cash Cat after the hype cools down? Does it pump again or is it a one-and-done kind of thing? Second, does the money that was generated in Cash Cat that maybe comes out of Cash Cat remain inside stablecoins, lending markets, and other DeFi applications on the Robinhood chain? Does the money stay in the ecosystem? And third, does the activity expand past Cash Cat into other meme coins or serious projects? These are the type of things I'm looking for. If people eventually move from one meme coin side of Robinhood chain to

tokenized stocks and lending all the things that they've built that are serious products, Cash Cat may have accidentally become a very effective onboarding tool. And one has to wonder because I've seen that $100 million roughly roll in about in a 24-hour period, did they do this on purpose to really boost the excitement in the chain? If the volume and users disappear when meme coin excitement ends, then this was just a huge launch week, you know, hype cycle, which is good for Robinhood chain, but long-term could actually have some impact in a negative way, My opinion, of course. There's one thing worth understanding though. Robinhood chain is permissionless, but that doesn't mean it operates exactly like Ethereum does being decentralized. Robinhood's own documentation says that the network uses sequencers with compliance screening. Certain transactions, including ones connected to sanctioned addresses,

can be blocked. So, there is room for censorship. And that isn't necessarily surprising for a blockchain built by regulated financial company, but it's another reminder that permissionless doesn't equal completely decentralized. It doesn't mean the same thing, right? They don't equal each other. I want that to be really clear for all my people out there, all my undergrounders. So, my takeaway here is pretty simple to wrap this video up. Robinhood chain was built for Wall Street and cat meme coins gave it its first major wave of attention. That attention is valuable. It brought users and liquidity and developers onto a brand new network. Well done. But, attention is not the same thing as adoption. The real story begins when the hype dies down. Do the users stay? Does the money stay? And does Robinhood chain become useful for anything beyond

speculating meme coins, cat coins? These are the questions that help you become a better speculator, in my opinion, never financial advice, ultimately raising your crypto IQ, which is one of the whole points of my channel. Is to raise people's crypto IQ. So, if you want to keep raising your crypto IQ with current what's happening and market trends and news and all of these different things, join us here on the underground crypto deep dive show Monday through Friday 8:30 p.m. It's a live streamed Saturdays at 10:00 p.m. and I hope to see you over there. We are building a community of people who not just love cryptocurrency, love to raise their crypto IQ and educate themselves so they can understand this market better, get niched into something. Come join the community. Free link to the Discord in the description.