Trading app Robinhood has received more than 100,000 one-star reviews after it blocked users from trading GameSpot stocks and other Reddit picks.
Stock market-savvy Reddit users had used the app to buy short-stock of GameStop. Investment management company Melvin Capital short-sold its shares of the 37-year-old games company in the hopes of making stacks of cash.
However, it didn’t work in the company’s favour, and it ended up losing an eye-watering $13 million hedge fund.
Don’t worry readers, you haven’t accidentally clicked a link to the Financial Times. If you’re as confused as I am about all this stocks and shares business, you can read a more beginner-friendly explanation here.
After Redditors basically played Wall Street at its own game, the investment app decided to block users trading their GameStop stocks, along with other popular Reddit ones including AMC and Blackberry.
As a consequence, the app has received hundreds of thousands of one-star reviews.
A statement issued today, January 28, from Robinhood reads, ‘Our mission at Robinhood is to democratize finance for all. We’re proud to have created a platform that has helped everyday people, from all backgrounds, shape their financial futures and invest for the long term.
Referring to GameStop as ‘$GME’, the statement continued:
We continuously monitor the markets and make changes where necessary. In light of recent volatility, we are restricting transactions for certain securities to position closing only, including $AAL, $AMC, $BB, $BBBY, $CTRM, $EXPR, $GME, $KOSS, $NAKD, $NOK, $SNDL, $TR, and $TRVG. We also raised margin requirements for certain securities.
Robinhood has since received backlash for its decision, demonstrated by the deluge of poor reviews.
One Twitter user wrote, ‘after delisting GameStop and AMC, Robinhood has gotten over 100,000 1 star reviews in one hour on the app store, now set with a 1 rating. they deserve it [sic].’
Meanwhile, someone else said, ‘They want to remove $GME and $AMC from Robinhood? We will remove them from our phone. #DeleteRobinhood.’
Many others pointed out that the app’s name is ironic, as it appears Robinhood is more interesting in helping the rich, than it is the poor.
If you have a story you want to tell, send it to UNILAD via [email protected]