Global Crypto is getting reports that Robinhood have removed the GAMESTOP stock from their trading app in response to the Wallstreetbets Reddit debacle.
Robinhood is an app popular among amateur stock traders, with hundreds of thousands of downloads across Apple and Google’s app stores. The platform, which also has a website, offers trading tools, stock tips and even a cryptocurrency exchange where users can invest in Bitcoin.
Robinhood was founded by Baiju Bhatt and Vlad Tenev, two children of immigrants who met at Stanford University in 2005. Somewhat serendipitously, they were inspired by the Occupy Wall Street protests to create an app that made the stock market more accessible.
Critics argue that Robinhood “gamifies” investing, using tactics employed by addictive gambling apps to encourage users to buy stock. The app sends frequent push notifications to users about their stock positions, and when they make their first trade, confetti “rains down” in the app.
In response, Robinhood said that the app’s features “are meant for informational purposes only, and are not intended to serve as a recommendation to buy or sell any security.”
Yesterday, Reddit users managed to send shares for retailer GameStop skyrocketing in a move that left major hedge funds reeling from billions of dollars in losses.
Since the news broke, Robinhood has reportedly just today removed GameStop stock from its trading app.
It reportedly also removed AMC, Express, and Nokia stocks.
Popular crypto influencers and leaders in the industry such as Meltem Demirors have highlighted the comedy that has unfolded:
🤡 this is some clown shit 🤡
— Meltem Demirors (@Melt_Dem) January 28, 2021
Users in a group called WallStreetBets came together to send GameStop’s shares up a shocking 130 percent on Wednesday.
The struggling video game store’s shares are up a total of 1,700 percent since the beginning of January, from $17.25 per share to $347.51.
The Wall Street trolls, apparently led by YouTube finance expert “Roaring Kitty,” are driving up share prices by betting against Wall Street short-sellers.
Short-sellers, despised by many, are big hedge funds that bet on a decline by selling borrowed shares in the hope of repaying at a lower price.
Global Crypto have reached out to Robinhood for comment but have not as yet received an official response to the matter.