Robinhood Just Dug Their Own Grave

So Vlad Tenev, the CEO of Robinhood was on CNBC last night. Instead of “manning” up to his companies wrong doings, instead of doing damage control, he dug a deeper hole for himself and the company.

Vlad said they made the decision in the morning to limit the buying of about 13 stocks, but their customers could still sell those securities and that their customers could also trade the thousands of other stocks on our platform.

Vlad also talked about the decision to halt the buying of those 13 stocks had nothing to do any market makers or hedge funds. And the sole reason was as a brokerage firm, they had financial requirements including SEC net capital requirements and Clearinghouse deposits.

However, Vlad made sure to throw in that Robin Hood stands for everyday investors and their mission from day one remains to opening up access and give the Masses the ability to trade commission free. But this past week, we just saw what their real mission is and who their loyalty belongs too.

Today, Robinhood has restricted trading and cryptocurrencies after Bitcoin saw a massive move this morning. Yes, Elon didn’t help matter after changing his Twitter bio to hashtag Bitcoin, but that’s not the point. The point is Robinhood customers are even more pissed off. You see, Robinhood turned off the ability for customers to use its instant buying feature with cryptocurrencies. Instant buying refers to a customer being able to transfer funds from a bank account and instantly buying cryptocurrencies (or stocks) before the funds have actually settled.

Robinhood was expected to go public as early as this quarter. Robinhood was valued at around $12 billion as of September. Robinhood was considering selling shares directly to its users instead of going through the traditional routes of an IPO, instead they choose to sell wolf tickets. Those wolf tickets that nobody bought as resulted now in Robinhood fighting for their lives to say in business now.

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Video Source - https://www.youtube.com/c/CNBCtelevision/videos