Robin Hood
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Just a few days ago we received news that a group of Reddit users had revolutionized the stock market by buying GameStop shares massively , a video game chain that was in full decline. Far from over, it seems the soap opera continues, now involving the Robinhood trading app.
And the fact is that the application has been accused of having sold the shares of users, although those responsible for it did not take long in denying it.
What happened to GameStop
To begin with, let's put the situation in the background. GameStop was a well-known video game store chain in the early 2000s. But with the rise of digital downloads, it had gradually declined. This implied store closings and layoffs and, consequently, also a fall on the stock market, to the point that its shares were below three dollars.
But, in the last few weeks, a group of users on the Reddit forum WallStreetBet began to buy those shares en masse, making that its price would reach 480 dollars.
What is the problem with this? That many investment funds are dedicated to buying shares of companies in a bad economic situation to later sell them and make money taking advantage of that bad situation.But the brutal growth that GameStop has obtained in recent weeks has meant that not only have they not earned anything, but they have lost very high numbers along the way. Therefore, big investors have lost out because of this strategy of Reddit users.
Robinhood, the third in discord
What is Robinhood and what does it have to do with all this? Well, it is an application to buy and sell shares, often used by small investors in the stock market. And it is the platform used by the majority of WallStreetBet users to buy GameStop shares. And now these users accuse the platform of having sold their shares
This application decided, along with others such as TD Ameritrade, to block the possibility of continuing to buy GameStop shares to stop this situation.It is a movement that, basically, benefits large investment funds and harms small investors.
This has caused the shares of the well-known video game chain to once again experience a brutal fall on the stock market. But the story goes further. And it is that more than a dozen users have assured The Verge that the application has secretly sold its shares of GameStop An action that would be a clear example of a game dirty to favor the great fortunes.
Robinhood denies it
However, those responsible for Robinhood, in conversations with the same media outlet, have denied that the sale of shares secretly of users has taken place. They were advised that these shares could be sold to avoid economic losses.
The managers of Robinhood themselves blame the ignorance of some of these small investors on how these types of applications work. However, some users have come to share screenshots in which the application indicates that its shares in both GameStop and the AMC chain have been sold But no there is no proof that this sale was made behind the back of the users, so no one can prove what really happened. Everything indicates that this story will continue to develop in the coming days.
