As of this writing, Robinhood secured $3 billion in funding. The company claims that they will use the money to fund trading.
Robinhood denied favoring hedge funds
Meanwhile, Robinhood replied in an email it sent to its customers on Monday: “We had to take steps to limit buying in those volatile stocks to ensure we could comfortably meet our deposit obligations. We didn’t want to stop people from buying stocks and we certainly weren’t trying to help hedge funds.”
However, Robinhood has put itself in a very tough situation. The company might be facing charges from The Securities and Exchange Commission, and traders are leaving the platform. Even worse, thousands of the platform’s users filed lawsuits against the company.
Furthermore, users of Robinhood launched a second 1-star rating campaign on both Google Play Store and Apple’s App Store. Angry traders alleged Robinhood of disadvantaging them in favor of hedge funds.
Richest men in the world and CEO of Tesla (NASDAQ: TSLA) Elon Musk chatted with Robinhood’s CEO Vladimir Tenev regarding the restrictions imposed on the GME stock. Musk asked Tenev whether the restrictions are in favor of hedge funds. Additionally, Musk described Robinhood’s actions as “shady”.
Traders launch a second 1-star rating campaign
Last week, traders launched a one-star campaign on Google Play Store and Apple Store. Robinhood’s rating went from four stars to one star out of five in 2 days period. However, Google removed the negative reviews.
