Robinhood Co-Founder Admits Miscommunication in His Investment App

The investment application blocked the purchase of GameStop shares after reaching its all-time high of $483.
Robinhood Co-Founder Admits Miscommunication in His Investment App
Image credit: Depositphotos.com

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
Entrepreneur Staff
1 min read
This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

Co-founder of online investment app Robinhood, Vlad Tenev, acknowledged that there was a communication failure in the GameStop case. In remarks made on Saturday on the All-In podcast, he and CEO acknowledged, "I think the challenge was that we could certainly have communicated this a little better to customers. "

Robinhood outraged many of its users when on January 28 it restricted the purchase of 13 stocks short, including those of GameStop, whose shares had risen more than 1,600% to hit an all-time high of $ 483.


Robinhood.com

The company communicated the move to its users via automated emails that simply said they had restricted the purchase of certain shares. "As soon as those emails were sent the conspiracy theories started coming in immediately, so my phone exploded," Tenev added.

The executive acknowledged that they probably could have provided more details on the situation with the anticipation that perhaps clients might think that a hedge fund was forcing them to do so.

More from Entrepreneur

Our Franchise Advisors will guide you through the entire franchising process, for FREE!
  1. Book a one-on-one session with a Franchise Advisor
  2. Take a survey about your needs & goals
  3. Find your ideal franchise
  4. Learn about that franchise
  5. Meet the franchisor
  6. Receive the best business resources
Make sure you’re covered if an employee gets injured at work by
  • Providing us with basic information about your business
  • Verifying details about your business with one of our specialists
  • Speaking with an agent who is specifically suited to insure your business
Try a risk-free trial of Entrepreneur’s BIZ PLANNING PLUS powered by LivePlan for 60 days:
  • Get step-by-step guidance for writing your plan
  • Gain inspiration from 500+ sample plans
  • Utilize business and legal templates
  • And much more

Latest on Entrepreneur