77% of respondents believe Robinhood’s restriction of memes stocks during GameStop frenzy was market manipulation, new report finds
- A survey of 1,300 people found that 77% believe that Robinhood’s restriction of certain stocks in January was market manipulation.
- The survey found that 39% felt the event as a whole was “exciting and good”, while 17% felt it was “exciting but a bad investment”.
- 28% said Robinhood’s binge was chaotic in a positive way, while 15% felt it was damaging.
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A survey by a data analytics company Invisibly found that 77% of people believe Robinhood’s restriction of certain stocks during the height of the Reddit-fueled frenzy amounts to market manipulation.
The Robinhood commission-free trading app faced extensive backlash and scrutiny in the weeks following the short Reddit-fueled squeeze in January, with CEO Vlad Tenev grilled by lawmakers during the hearing of the February congress on the company’s decision to restrict the purchase of many “meme stocks” at the heart of the saga.
This move put the wind in dynamic commerce and marked the end of the phenomenon of retail traders in January.
Now a recent study Analysis of data from Invisably revealed that the majority of respondents believed Robinhood’s restriction of meme stocks was market manipulation.
The study, which surveyed 1,300 people in the first week of February, also found that 39% felt the market mania was “exciting and good” for investors, while 17% felt it was. “Exciting but a bad investment”.
28% said the trade phenomenon was a positive event and that “shaking things up once in a while is a good thing”, while 15% felt it was detrimental to the markets. Meanwhile, 40% of those polled believe Robinhood and other retail services have curtailed some stocks to help hedge funds.
The investigation paints a vivid picture of the public’s perception of what happened at the end of January, although Robinhood said it restricted trading in some stocks due to demands from the House of Commons. compensation.
GameStop shares quickly climbed over 400% before descending back to earth following restrictions from Robinhood and other brokers. The event has caught the attention of lawmakers and regulators, with the first of three scheduled hearings taking place last month. Congress heard from Robinhood CEO, renowned GameStop retail investor Keith “Roaring Kitty” Gill and Citadel CEO Ken Griffin.