Robin Hood not doing very well. The platform was born with the aim of making the trade accessible and in some ways attractive, even for the little ones. At the height of its success, it was worth more than $32 billion, now the company is valued at “just” $7 billion.
Robinhood has been greeted by very strong controversy since its debut, mainly because of its gamification mechanics, which are accused of inciting the very youngest to invest in the stock market in a reckless and irresponsible manner. Basically it goes round and round, even Robinhood, like other apps before her, was accused of creating addiction. In 2020, a 20-year-old boy took his own life due to a Robinhood glitch: the platform had incorrectly reported a negative balance of nearly $1 million.
But the Robinhood crisis has more to do with the more general economic situation in the world, with the rise in interest rates and therefore with the collapse of the stock market. Robinhood built its popularity during a time of great turmoil in the stock market. When shares of technology companies rose tens of percent quarter after quarter.
For reasons we have already explained, all speculative assets are in serious trouble today. It applies to cryptocurrencies, but also to the so-called ‘meme stockwho had made Robinhood’s fortune.
The situation is said to be so dire that, according to some rumors, Robinhood could be swallowed up by a larger company. FTX, a cryptocurrency trading platform, would in fact be interested in buying Robinhood. At the same time, even more institutional actors, such as Goldman Sachs and JPMorgan, they would have expressed an interest in Robinhood. News of a potential takeover boosted Robinhood’s stock market value, with the company’s shares quickly gaining 14%.
Source: Lega Nerd
