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.
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.
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.