We recently reported on the David VS. Goliath uprising going on in the stock market via a massive group of people in a forum online called WallStreetBets who all agreed to buy certain stocks in order to increase their value and screw the corrupt hedge funds–known as institutional investors–who had been betting against them. Most of the people buying these stocks were merely normal people–what is known as ‘retail investors.’ These retail investors were financially crushing the anti-American hedge funds betting against stocks like GameStop. These hedge funds have a government approved monopoly on market manipulation and a vested financial interest in causing the failure of American companies on the stock market.
“Robinhood is facing backlash for appearing to aid institutional investors over individual traders after the popular investing app blocked users from purchasing shares in GameStop and other companies that experienced a price explosion in January.
GameStop’s share price rose to nearly $500 last week as retail investors drove up the price against hedge funds and other institutional investors. These investors had previously shorted 140% of GameStop’s existing shares on the assumption that the security would decrease in value.
Institutional investors caught in the short squeeze faced considerable financial loss. The hedge fund Melvin Capital Management lost more than half of its $12.5 billion portfolio in January, according to The Wall Street Journal.”
That populous uprising has currently been artificially squashed by Big Tech–including the Robin Hood app itself, colluding with Wall Street and Government preventing and threatening to prevent traders from buying shares. There is now a class action lawsuit against Robinhood for its wrongdoings and all trust in the trading platform has been rightly disintegrated:
“Many of the online retail investors were using Robinhood and slammed the company for blocking users from purchasing shares of GameStop and other companies. Robinhood said in a Jan. 28 statement that it restricted transactions for certain securities due to “significant market volatility.” (RELATED: Everyone’s Laughing About GameStop, And Perhaps Justifiably So. But There’s A Flip Side To The Story)
Robinhood later stated in an open letter to users Monday that the company had to halt trading to meet clearinghouse deposit requirements that support customer trades. In an earlier statement released Friday, the company said its deposit requirements for equities had increased tenfold due to the market’s considerable volatility.
Robinhood staunchly rejected allegations that it wanted to stop users from trading or that its actions were designed to help hedge funds.
A class action lawsuit was filed against Robinhood last week alleging that the company’s “actions were done purposely and knowingly to manipulate the market for the benefit of people and financial intuitions who were not Robinhood users.”
So, Robinhood is is a stock trading app that duplicitously names itself after a Robinhood, a fictitious character who worked to give wealth to normal good citizens living under a corrupt illegitimate tyranny of usurpers.
Sound familiar? It should. That’s the point. That’s why they duplicitously used the name.
And, it was so blatently absurd that Even ‘Fredo’ Chris Cuomo bothered to ask a reasonable question to the weasely CEO of Robinhood:
“CNN host Chris Cuomo also grilled Robinhood chief executive Vlad Tenev over his company’s decision to restrict trading during a Friday appearance. He noted that the decision occurred after Robinhood’s clients began to lose money from the short squeeze.
“This looks like a move by an outfit called Robinhood, which is supposed to be taking from the rich and giving to the poor, and doing exactly the opposite,” Cuomo said.”
CNN’s Chris Cuomo: “This looks like a move by an outfit called Robinhood, which is supposed to be taking from the rich and giving to the poor, and doing exactly the opposite.”
Robinhood CEO, after it barred traders from buying GameStop shares: “That’s not what it is at all.” pic.twitter.com/ZJH9ZpJGde
— CNN Business (@CNNBusiness) January 29, 2021
Well, it turns out that Robinhood was a Trojan Horse. Instead of working for its retail citizen users, it was instead merely a platform that Hedge Funds. The platform mined the trading data of users to understand their behavior and who knows what else. This would allow them to know exactly what citizens were doing and make even more money robbing those users on Wall Street. And, the second that retail traders realized and financially articulated their power on the relatively new platform, they were ruined by the platform itself.
This occurred when Robinhood (and other platforms) illegitimately stopped trading of GameStop Shares and others that the Reddit group WallStreetBets were buying en masse.
“One reason why allegations against Robinhood have persisted may have to do with the company’s controversial revenue model, which has led to a surge in earnings over the last two years, according to CNBC.
Robinhood has long branded itself as an accessible platform that provides free financial services for its users. Its mission statement includes a pledge to “democratize finance for all.” But the company makes money by selling its order flow — information about user transactions — to third party clients who actually enact trades with access to user data.”
Order flow has accounted for the vast majority of Robinhood’s quarterly earnings. The company earned roughly $675 million in revenue from payments for order flow, according to quarterly revenue data compiled by The Box.
Trades may be commission free for Robinhood users but they are actually sold to “market makers” that often used their position as the middle man to generate profit, according to the Financial Times. Most of these “market makers” are hedge funds or other institutional investors that financially benefit from more trade and market volatility.
Robinhood was fined $65 million by the Securities and Exchange Commission (SEC) in December for “misleading statements and omissions” regarding its payment for order flow process. The SEC concluded that Robinhood “deprived” users of $34.1 million after providing their order flow to clients that prioritized higher revenue over providing the best price for customers.
Robinhood’s largest clients for order flow are all hedge funds and other institutional investors according to an SEC filing from 2020. More than half of the company’s market orders were purchased by Citadel Securities — an affiliate of the hedge fund Citadel LLC.”
As the old adage goes, if you are not being charged for the product, you are the product:
RobinHood is the Facebook of investing. There’s a reason it doesn’t charge you for trades. It sells information about your trades instead. It’s far more lucrative and explains why it’s willing to stop you from trading since you’re not really a customer-just a user/data point
— Jason Aten (@JasonAten) January 28, 2021
We also previously noted that Biden’s Secretary of the Treasury, Janet Yellen, received millions from Wallstreet, including Citadel, which has ties to Robinhood. The Daily Caller thinks so, too:
“Citadel LLC notably attempted to bail out Melvin Capitol with a $2.75 billion investment after its GameStop short cost the latter billions of dollars, according to The Wall Street Journal.
Citadel Securities was also fined $22 million by the SEC in 2017 after the “market maker” was charged with providing misleading statements to brokerage firms about the way it priced trades ordered by retail investors.
According to SEC filings from 2020, other institutional investors that purchased Robinhood’s order flow included hedge funds G1X Execution Services LLC and Two Sigma Securities LLC along with brokerage firms Wolverine Securities LLC and Virtu Americas LLC.
Robinhood’s terms of service notes that certain content “is furnished by third parties” and specifies that neither the company nor third party provides are liable for damages. The company’s user agreement also requires investors using the app to “authorize or allow third parties” to gain access to services including market data and account information.
Those provisions are relatively common for terms of service and user agreements. But both Robinhood and the hedge funds that purchase user information have been charged by the SEC in the past for misleading individual traders, behavior which may have fueled the allegations that Robinhood restricted trading on its platform to protect the clients that finance the company.”
The good news is that decentralized stock and crypto exchanges are currently in use and their time of supremacy is coming. Once established and trusted, they will not be able to regulated like Robinhood by swamp creatures like those who run Wallstreet and Robinhood.
But until then, corrupt platforms like Robinhood still exist and they are the gatekeepers to the financial wealth of the world and you should support their undoing and comuppance.
ARTICLE SOURCE: 100percentfeedup.com