How many users would you wager Robinhood lost?
I have actual brokerage accounts and am more of a crypto aficionado so no skin in this game but what happens to RH now?
I understand that all of the drama was due to risk/liquidity issues but I’d venture that 90% of RH users can neither grasp nor accept this. Wtf do you think will happen when a startup gives you instant access to cash (and margins...) to blow on dumpster fires?
Am assuming they’ll be hemorrhaging users but am interested to see how this shakes out. Hope I never have to see that antsy CEO and his headband upspeaking out of his vagina on my TV screen ever again
They had 600,000 new users on Friday.
https://www.google.com/amp/s/www.cnbc.com/amp/2021/02/01/robinhood-appe…
So 600k noobs (who have now likely been burned) to take the place of existing users, many of whom with substantial holdings and cash on the line.
I certainly would not feel comfortable maintaining 6 figures worth of anything on RH after last week. It’s not even about placing limits on trading, it’s about their liquidity and prescient risk management
I have money with RH. If anything happens to them, it's still federally insured and shit, right? I just buy and hold. I never sell anything. Is there a benefit to being with Fidelity or whatever over RH? I don't care if I get a half cent better fill price.
Well a legit brokerage platform provider would manage risk more tightly so that they won’t have to inconvenience their users in the event of “unprecedented” circumstances. They can blame it all on social media and memes all they want but it’s clear that their business model of enticing gullible people to day trade with lightning fast access to money is not tenable.
What’s to happen the next time around should something unforeseen blow up out of nowhere? At least the whole Reddit saga was a slow buildup over a week or two and they still didn’t handle it until they were pushed into a corner. Why would anyone trust their money on there even if it’s insured? If the whole thing blows up, it will be tied up for months.
If anything, the last few days have been free publicity for them. I wouldn't be surprised if they have more users than ever.
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