Facing a volatile market, Robinhood touts reliability
In a Tuesday blog post marking a year since the GameStop stock controversy, Robinhood brushed past liability claims to emphasize measures that should prevent another trading halt. The trading platform now features a net capital position of $2.7B, 24-hour phone support, and improved risk infrastructure.
Why should we care?
Robinhood’s greatest liability is its bruised reputation. With more than 50 lawsuits related to meme-stock trades underway, the company’s branding as the front guard of a financial revolution is less convincing than it once was. Robinhood saw a post-GameStop exodus, in addition to other traders who abandoned the stock market in favor of NFTs. With meme stocks and cryptocurrencies both on the decline, Robinhood’s emphasis on its improved stock-market services—while mentioning its extensive crypto trading features only in passing—may be an effort to woo former customers back to the platform, especially those looking for new, relatively reliable income streams. “The retail investing revolution has shown us that a new generation of investors wants their voices to be heard,” the company’s announcement read. “Our work has only just begun.”