Estimated reading time: 3 minutes
Robinhood has millions of registered users on its platform. In large part because they have seemingly put the stock market in the hands of millennials. While the stock market seemed like a pipe dream for most, it is now a reality for the young hustlers. Of course, they are not pumping money in like the big banks, but that’s not the point of Robinhood. Their marketing has always been geared towards the people and given them the financial tools to succeed. At least, that’s what they market.
What happens on Reddit, doesn’t stay on Reddit
For any of you reading, I’m assuming you know about what happened on Reddit. I won’t go much into detail since you’ll just be able to watch the Netflix movie that comes out with Noah Centineo. Yeah, that is reportedly in the works. Point is, a bunch of people on reddit got together to pump heavily shorted stocks like GameStop to make hedge funds lose money and help each other gain money. It was the first time I truly saw a Robinhood kind of effect. Take from the rich and give to the poor.
However, that feeling was short-lived. Robinhood, the app for the people, restricted trading and only allowed investors to sell their shares and not buy. Obviously that led to a dive in the price and the destruction of what the Redditors aspired to do. After that, the real chaos ensued. They wanted Robinhood to pay for what they did and started a boycott.
Millennials sticking with Robinhood
The thing is that the amount of users from Robinhood didn’t seem to falter. So what really happened? Well nothing. Robinhood is a great platform for beginners and they have a monopoly on millennial investors. Where else could they go that made them feel as secure and knowledgeable as Robinhood had made them feel? Well there really isn’t one yet that is on Robinhood’s level. Of course some people might think that other platforms could match Robinhood, but my personal opinion is that Robinhood continues being the best.
Even after its recent debacle over the weekend when Elon Musk took over SNL. The price of Dogecoin had soared over 20% leading up to the show and many expected it to go much higher during the broadcast, including myself. There was really no reason why it should have gone down unless Robinhood had something to say of course. During the broadcast, Elon Musk and Dogecoin were trending so it seemed like a perfect storm was brewing for another pump in Dogecoin. But Robinhood started displaying server errors on some investors’ accounts. They were not able to buy or sell so the price of Dogecoin remained rather stable, if not slightly dropping as the broadcast progressed.
Will something better ever come
Robinhood is really running out of options here. The trust they have with the millennials is non-existent. The only reason why millennials keep using the platform is because they simply have the best design and functionality by far. But once word starts getting around about another platform that can do half the things that Robinhood can, things won’t look great for Robinhood. And, at this point, they deserve it.