In 2021, Robinhood hit the headlines for all the right reasons. The investment brokerage, which catered mainly to armchair investors looking for small-but-lucrative funds, literally almost broke Wall Street.
Small-time investors had rallied on Reddit and then used the online trading app – among others – to launch their offensive after a GameStop share-buying frenzy.
The stock-buying surge followed calls-to-action on Reddit’s wallstreetbets and was then facilitated via online trading portals – including the commission-free stock trading and investing app Robinhood.
GameStop’s share price soared as the cheap stock was shorted by hedge fund giants jumping on what they saw as an ideal opportunity to profit from a dying company.
Leaders of the world watched in astonishment as the event unfolded – resulting in then-British Prime Minister Boris Johnson and US President Joe Biden making public statements as the situation escalated.
Within hours, the armchair traders were curtailed, with Tenev criticised for his handling of the affair, which admittedly saw him act in the…
