Presumably the reward amount is random with a few people getting dramatically more than everyone else. As if you got an entry into a lottery as a reward.
They did this strategy with stock, maybe they still do. You got a random share that could potentially be Microsoft or Apple or what not and you could earn more via successful referrals.
I ended up getting some random pharmaceutical company whose name eludes me but it hovered around $5 the entire time I had it. I think it peaked at 8-9 once even, it was quite exciting for a neophyte like I was then.
Robinhood Crypto is a trading platform where
users own their own crypto and we hold it
securely on their behalf.
Is this regulated somehow? Are there any governmental auditors coming in from time to time and check whether that crypto really exists? Or is it possible that they sell unbacked IOUs?
There is no crypto trading platform or organization which had even a single independent audit, in any country. That's more than enough information I think :)
In crypto, the answer to "is this regulated" and "are there government auditors" is always "haha absolutely not".
And they really like it that way. Sure, Sam Bankman-Fried is in jail because he took $8 billion of funds that his company was supposed to be holding on customers' behalf. But see, that's actually positive for crypto, as it somehow in crypto-bro logic proves that everybody else is clean as a whistle. (Never mind that SBF was the #1 credible face of this industry only 14 months ago.)
Gamestop meme traders deliberately set out to smash the system and they succeeded to a small extent. Robin Hood, in the face of the partners they rely on refusing to allow further acquisitions, did the best they could by still allowing selling.
For any normal trader what happened on one specific day to one specific stock which was deliberately manipulated on a massive scale to try and cause a trading halt is utterly irrelevant.
You do know that besides Robinhood many of the other brokers also halted trading the same tickers? Robinhood was the face of the issue for sure, but a lot of others did the exact same thing.
Most of those 'other brokers' that halted trading, were similar to Robinhood, as in not really a proper brokerage.
No serious bank ever halted trading, why would they?
I know its hard to believe, but the entire customer base (23.3M) of Robinhood is a testament to how good their product is in spite of the misgivings of the brokerage during the "GME". If it makes it feel better, their MAU is down 16% year-over-year to 10.3 million.
I am also a user and I love it - and while I don't trade crypto, but they offer the lowest commission in crypto. And my uninvested cash gets a decent interest (5%), and my trades execute reasonably well. It maybe not for a professional trader, but my own experience has been fantastic for what it offers.
Also incredibly thankful that there is no trading fees across many of the brokers now, which I believe was forced by Robinhood. I know of the PFOF controversy, and regardless I hold this view.
I also know I can't change your view, but hope you have a great weekend ahead!
>Robin Hood, in the face of the partners they rely on refusing to allow further acquisitions, did the best they could by still allowing selling.
You mean Robin Hood manipulated the markets? By only allowing sell orders you manipulated the price and market. In some cases they even automatically sold positions without knowledge of the retail traders.
They should have gone bankrupt, instead they robbed many retail traders.
That’s the wallstreetbets angry meme explanation but not what happened.
What actually happened is brokerages are required to hold capital reserves to cover options held by customers. You can spend a few dollars and your brokerage is required to have sometimes tens or hundreds of thousands in the bank to cover your option.
During peak memestock options activity went to a crazy unprecedented level, Robinhood had to raise billions of dollars in a day or two, like nearly four billion in a few days. And it wasn’t enough so they had to stop trading or put limits on buying options for GameStop and a few others. Etrade and interactive brokers at least also did.
They didn’t go bankrupt or get stomped by regulators or congress because they were behaving within the law and reasonably in an unprecedented situation.
>Gamestop meme traders deliberately set out to smash the system
That is a very strange and biased POV. They did the exact same thing as people have done for years and years, the only difference being this was joined by many people not in the industry.
My understanding was that the whole point of the Gamestop trading was to force financial companies into a position where they were facing insolvency.
I guess it was a hyperbolic to describe it as smashing the system, but the key thing is that the primary purpose was to cause disruption, rather than purely to make a profit. That they became angry when that disruption occurred is a bit baffling to me.
What do you think is wrong with the way they handled the GameStop debacle? They say they run out of cash to fund people buying GameStop on margin. They raised more from investors and opened up buying again. The facts stand up that the whole debacle was a result of their incredibly generous margin facilities. Other (better) trading platforms exist that didn't stop allowing purchases but also didn't give out $1K interest free margin.
> Robinhood restricted trading in these stocks in order to meet collateral requirements at their clearinghouse
> The [class action] case was dismissed by the Miami federal court that November, on the grounds that the plantiffs fell short of providing direct evidence of an antitrust conspiracy
> Starting today, we’re rolling out brokerage services in the United Kingdom. UK customers will have access to commission-free trading* of more than 6,000 US-listed stocks and ADRs including TSLA, AMZN, and AAPL. Our expansion to the UK marks an important milestone in our journey to democratise finance around the globe and increase access to the markets for all.
> At launch, we’ll offer trading without foreign exchange (FX) fees, trading outside of market hours with Robinhood 24 Hour Market*, and no account minimums. Customers can build a portfolio for as little as $1 and grow their uninvested cash as they work out their investment strategy, earning 5% AER.
Is this the same Robinhood partially owned by a private brokerage firm also running its core order clearance system services. Then turning around and hosing the users when the short squeeze is pinching said firm too hard.
How are these guys still in business? It is like seeing a Chihuahua eat a 40lb bag of dog treats,.. impressive for the wrong reasons. lol =)
Recently number go up, so there will be people tempted to "invest" in number going even upper.
Of course, number going up is purely due to consumer and institutional demand and has nothing to do with, say, Tether printing another 5 billion USDT recently.
I have this fantasy that Tether is legit, and trying to look shady, so that they can buy dollars at a discount. Any time market confidence falters, they prop up this price by buying back tether (which is backed 1:1) at a price under 1. They purposefully don’t provide any evidence, because it leads to cheaper dollars for them to purchase.
Definitely not true, but what a beautiful “scam” that would be.
I'm not here to judge crypto, but regardless : casual, loosely-regulated financial investment, in a famously volatile space, and controlled via smartphone app, is a scenario that warrants cautious decision-making.
"Customers will earn a reward of up to 1 BTC when they first sign up and can receive up to 1 BTC for each successful referral"
and
"98% of rewards are worth €10–€20 in BTC."