Robinhood, an online brokerage firm that helped fuel the “memetic stock” frenzy earlier this year, was later criticized for its trading frenzy and is currently facing resistance from social media forums against its IPO.

Discussions on the Reddit online forum show that many individual investors are planning to avoid stock market debuts, and several posts urging users not to buy IPOs have gained support from thousands of people in recent days.

“Ignore Robinhood’s IPO completely,” said a post on the r/Superstonk subreddit, which also recommended that traders move to Fidelity’s trading platform.

Robinhood, which has reserved IPO shares for retail investors, declined to comment.

After the so-called meme stock trading frenzy such as GameStop this year, the company came under scrutiny. Its fanatical handling, glitches, and ensuing transaction restrictions have aroused the anger of many users and American lawmakers.

Since then, many posts on social media forums have called for users to boycott the platform altogether.

“Totally forget Robinhood. Let them fall into lawsuits and lose their customer base,” another recent post said, with more than 7,000 votes.

Another Redditor said: “Robinhood can’t even get their app to work properly, can’t fill orders in time, and has been providing users with incorrect information about their transactions.”

Robinhood was about an hour late on Friday and encountered cryptocurrency trading and display issues on its platform.

Last week, Robinhood applied for its widely anticipated market listing application. The company disclosed a large number of user growth and also marked multiple investigations by prosecutors and regulators.

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Earlier this year, the trading application operator launched a new platform to provide retail investors with the opportunity to buy IPO shares. Robinhood will reserve 20% to 35% of IPO shares for such investors.

The company also warned investors in its initial public offering documents that it may become a meme stock, saying that the large participation of retail investors may trigger fluctuations in its stock trading prices.

© Thomson Reuters 2021