Would you rather have something you don’t want or want something you can’t have? If you are a Robinhood user, you may have found yourself in both of these positions at the end of January 2021.
If you’re not a Robinhood user, you might be wondering exactly what went down. According to a post at Seeking Alpha, here’s what happened:
Thursday, January 28: Robinhood limited trading in a batch of stocks in the Reddit crosshairs where investors couldn’t add to positions. Also closed out some at-risk positions because of “unprecedented volatility.”
Friday, January 29: Robinhood raised $1B from investors and tapped another $500M overnight. Reopened limited trading in the stocks, which led to after-hours gains in those issues.
Robinhood waited until Friday to let users know the limits of no fractional trading and maximum amounts causing increased complaints. They also quickly restricted margin trading in crypto after a surge in Bitcoin was sparked by Elon Musk.
On those days, if you use Robinhood, you may have had some stock you didn’t want and couldn’t sell. Or you might have wanted to buy some stock you couldn’t have, because it was blocked or limited.
Complaints, Protests And Lawsuits
Detailing the complaints, protests and at least one lawsuit against Robinhood, ZeroHedge wrote, “Robinhood users, many of them restricted in their ability to trade today, took to the streets with anger in several locations to protest the discount brokerage, hedge funds, and elites.”
Chants of “Robinhood has got to go,” and “We want a free market,” were heard near the New York Stock Exchange.
“Robincrook,” “Tax The Rich,” “Robinhood Lied,” were some signs held by protestors.
With claims of Robinhood being the “Biggest Fraud,” the plot thickens!
Has The Robinhood Exodus Begun?
Tyler Durden wrote an article with this title echoing all the rage felt by Robinhood users. He says, “the evidence is mounting of a possible mass exodus.” Customers aren’t happy!
“Google spent late last week removing nearly 100,000 negative reviews from the Robinhood app in the Google Play Store.”
Many shared their unhappiness with tweets and petitions. A petition wants to remove Robinhood from the App store. Last check, it was well on its way to 50,000 signatures.
These tweets from investor Ross Gerber seem like alerts or warnings. He said, “So if Robinhood goes under, the SEC will freeze all the accounts. The SIPC protects up to $500k in accounts. It takes months to unwind and get your money back. Move the money now. This could become a nightmare.”
Question The Sanity
With the ongoing threats and problems for the popular trading app, Durden wrote, “one questions the sanity of people who would stay with the firm after today’s betrayal knowing they are reportedly facing liquidity issues.”
See related: Robinhood’s Hurricane of Trader Complaints
It makes you wonder if it’s like a bad relationship from which they can’t break free.
Do Robinhood users really feel they’ve found the best mobile stock app? Is there a sense of loyalty to this pseudo robo investment advisor? Are their investments being held hostage by an online share trading app?
No matter what their reasons, Durden spoke the truth when he said, “Something bad is about to go down at Robinhood…”
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