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 , 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 sharebuying frenzy .
The stock-buying surge followed calls to action on Reddit ’ s wallstreetbets subreddit 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 . He later admitted Robinhood could have communicated the situation to investors " a little bit better ".
The Gamestop shares debacle was a David and Goliath moment for the giant hedge fund operators in the world ’ s busiest exchange , and the aptly named Robinhood has become synonymous with the power and potential fintechs can provide for the little man .
On the Gamestop trading event : “ I recognise customers were very upset ( from the restrictions on trading )... it would have been significantly worse if we had prevented customers from selling ”
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