I find it very disturbing that my fellow hodler would even think about reference a corrupt and dangerous entity know as “Robinhood.”
Unless you havent followed the news or just chose to ignore it let me summarize.
Robinhood is a exchange that due to their simple interface and lack of strict controls, allow investors to invest into the stock market, buying or selling options, and even some cryptos. They have nice graphs and easy to understand profolios. They became popular mostly due to wallstreetbets and retail trading offering 0$ trading fees bu selling investor data.
They make money off your trade by letting other knows what you traded allowing large hedge funds to bet against the you. This is important due to the fact that on jan 28th 2021. Widely popular stock GME was breaking all know trading algorithms and analysis to go from 12$ to 500$+
Robinhood not having enought capital to back the ever increasing retail buying of GME disabled buying this stock and allowed only selling. It was only found later that they received payment for data from Citadel, a large marketmaker who just so happens to be betting against retail traders by shorting GME.
This is against the law and trading rules but guess what. After all is said and done the penalty of breaking the would cost them millions, pocket chain in their sofas while not taking illegal action would cost them tens of billions.
Robin has been fined 70 million for the GME fisco, the ceo has his cell hpone seized by the feds and their calculated loses are still ongoing even to this day. Not only that, their IPO earlier this year was canceled due to the overwhelming pissed off clients from the GME fisco costing them billions in potential investors.
Now they are planning to IPO again after the cloud has settled and using dodge coin as a scape goat. There are reports of people transfering stocks from robinhood to fidelity and finding out their cost basis was not their original buy price but at the current market price. This means Robinhood does not buy stocks when retail orders them and does not have stocks on hand.
Similar to selling people a ticket for a hat but never having the hat. What if everyone who received a ticket wishes to move their hats from storage to their house. Now RH has to buy it at market price and eat the cost hence their fears of doge sellers en mass. Broker must have collateral to pay for purchases and is unable to use consumer funds for this.
Robinhood is also a centralized exchange. You do not own the cyptos you buy because you so not have keys. You wonder be able to convert or transfer out but only sell back to fiat. They stated they will never make a wallet.
I stated before on all the other robinhood post. This is a greedy for profit at all cost broker. They will do anything to fuck you over. And their reddit bans you instantly for any questions against their App.
TLDR: RH has shown shady business practice and will do it again if they are losing money. Crypto you buy there is not yours and they will never make a wallet. Fined 70 mil by feds and CEO phone seized. Many pending lawsuits.