On-line brokerage Robinhood, which helped allow the “meme inventory” frenzy earlier this 12 months and later attracted flak for its dealing with of the buying and selling mania, is going through pushback on social media boards in opposition to its preliminary public providing.
Many particular person traders are planning to shun the inventory market debut, and a number of other posts in latest days urging customers to not purchase into the IPO have obtained 1000’s of upvotes, discussions in on-line boards on Reddit confirmed.
“Simply ignore the Robinhood IPO completely,” stated a publish on the r/Superstonk subreddit, which additionally suggested merchants to switch out to Constancy’s buying and selling platform.
Robinhood, which has reserved shares within the IPO for retail traders, declined to remark.
The corporate got here below scrutiny after this 12 months’s buying and selling frenzy within the so-called meme shares reminiscent of GameStop. Its dealing with of the frenzy, marred with glitches and adopted by buying and selling restrictions, attracted the wrath of a lot of its customers and U.S. lawmakers.
Since then, various threads on social media boards have known as for customers to boycott the platform completely.
“Simply neglect Robinhood altogether. Allow them to go down in lawsuits and lack of buyer base,” stated one other latest publish with greater than 7,000 upvotes.
One other Redditor stated, “Robinhood has not even been capable of preserve their app working correctly, has not been capable of fill orders promptly, has persistently supplied incorrect data to customers about their trades.”
Robinhood skilled crypto buying and selling and show points on its platform for about an hour late on Friday.
Final week, Robinhood filed for its broadly anticipated market flotation that exposed huge person development whereas additionally flagging various investigations by prosecutors and regulators.
Earlier this 12 months, the buying and selling app operator launched a brand new platform to offer retail traders with the chance to purchase shares in IPOs. Robinhood is reserving 20 p.c to 35 p.c of its IPO shares for such traders.
In its IPO submitting, the corporate additionally warned traders that it may change into a meme inventory, saying that enormous participation from retail traders may set off volatility within the buying and selling value of its inventory.
