Popular stock trading app Robinhood has halted the purchase of GameStop stock as tensions escalate between casual investors and the Wall Street elite.
Yesterday the internet burned as interested parties and bystanders alike mused over what exactly was going on with GameStop and Wall Street. The quick rundown is that a community of internet dwellers managed to manipulate the stock market for their own personal gain.
Now, this normally wouldn’t be news in and of itself. After all, it’s sort of what happens on Wall Street everyday.
However, the fact that this group did it by intentionally targeting a Wall Street hedge fund, who had essentially betted on the failure of videogame retailer Gamestop, has caused a big stir. It’s a fascinating story we covered yesterday that needs to be read to be believed.
Of course, things are still moving at light speed. Today’s big development is the involvement of a hugely popular stock trading app, Robinhood.
Robinhood enters into the fray
One of the most popular sentiments going around was that these rich arseholes had been beat at their own game. Poetic justice had just climbed onto Pegasus. However, fast forward to today and it appears the battle, let alone the war, has yet to be won.
Robinhood is a commission-free stock trading app, which for this very reason is popular amongst casual investors.
As you may have guessed, the majority of the people buying GameStop shares (GME), the act that was ruining Wall Street’s day, are not experienced investors. They don’t have a stockbroker or fancy subscription based software. They use Robinhood and its ilk because it’s readily accessible; and to be honest a name like Robinhood goes pretty well with the sentiment behind this movement.
This is unacceptable.
We now need to know more about @RobinhoodApp’s decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit.
As a member of the Financial Services Cmte, I’d support a hearing if necessary. https://t.co/4Qyrolgzyt
— Alexandria Ocasio-Cortez (@AOC) January 28, 2021
Robinhood shows its true colours
However, a company’s name is generally more marketing than sentiment. When Robinhood users checked their app this morning, they found themselves unable to buy more GME.
The only options they had available to them were to sell or hold. However, a bit of research indicates that if you have a stockbroker. the option to buy is still on the table. Yeah… so speaking of bets, I’d like to put all my money on Robinhood being in bed with Wall Street.
This you? pic.twitter.com/eDgW0hdsPw
— DU54NE D. (@adizjapalmer) January 28, 2021
It’s like being invited into a golf course, only to be told to carry the clubs five steps behind. Since Robinhood restricted GME trading options, the stock’s value has almost halved.
Influential US Congresswoman Alexandra Ocasio Cortez, often critical of Wall Street practices, has recently weighed in on Twitter. Interestingly, she has found support across the political divide from Republican Senator Ted Cruz. If a debate can get these two onto the same side one might think it has serious legs.
Gotta admit it’s really something to see Wall Streeters with a long history of treating our economy as a casino complain about a message board of posters also treating the market as a casino
— Alexandria Ocasio-Cortez (@AOC) January 27, 2021
As is evidenced by the existence of this article, a whole lot can happen in 24 hours. We will continue to watch this space and do our best to keep you informed as the story progresses.
Pretty sure I can hear Elon Musk hollering next door about something that is surely related. Oh wait no. Just something about Cyberpunk 2077