So there were some issues in the last week, of what seems to be market manipulation on a grand scale of collusion between brokerages. This may or may not be funded and backed by securities companies, hedge funds, and Clearing houses. Well, conspiracy aside,
So they are apologizing via their blog posts on February 1st:
RobinHood’s apology:
A lot of filler words and fluff, there’s some substance that we can look in to, for example:
Translation: “We were held ransom to make a $3 Billion dollar deposit, and we liquid but we ain’t that liquid. So we just canceled trading these meme stonks. Lmao”
They repeat themselves about having to ‘comply with some laws and regulations’ without specifying what those are. Besides the being strapped for cash on the making a deposit for insuring DTCC settlements.
Communicating rules and their actions by not telling people what happened with information they had at 3am that day (January 28th, 2021). Restricting trading out of no where, during market hours, at 10am. Also raising margin requirements without due notice, and margin calling people for ‘volatility’ with the new set requirements. Totally fishy.
All of this without much communication at all. Nice.
Robinhood’s Customer’s response:
Well to be fair, it’s been incredibly overwhelmingly postive-ly negative;
They even made a Facebook post:
Lot’s of criticism in public light:
They know they done goofed, and now they scrapped their IPO. Which is a good move, because people are bearish and they might even learn what puts and short selling is. (especially after people fighting Hedge Bros learn all the juicy dirty tricks of Hedge Bros short selling).
There’s also going to be a congressional hearing or something, on February 18th. So that’ll be fun, I guess.
eToro:
Yea, so they erroneously sold stonks at a loss. It’s not like you have to fork up money as collateral to sell a stock. Seems fishy, and highly conspiratorial flavor.
It’s an error
but only on specific stonks
yea, sure thing.
eToro’s user’s responses:
Mostly, their users just want money back. they were looking to make a profit, and this definitely ensured a loss.
So here are some notable comments to the blog post (They’re notable because I took note of them in the blog post, duh):
Other people are doubtful and want to file suit.
Most just really want their money:
Some customer got screwed over multiple times:
eToro update:
eToro posted an update on February 2nd:
So they were able to recompensate hopefully everyone that lost money gambling on degenerative meme stonks.
Atleast eToro paid people back, althought their apology was still poor considering that it was an “Error” that only applied to “Specific” stonks. What a coincidence, right?
Lawsuits
People are reasonably upset, and people think there is a good case for securities fraud or some other illegal or nefarious activity. Regardless, people lost REAL money, so there are people who would chase that lead.
I mean, if people took the bribe money/recompensation, then there probably won’t be an eToro lawsuit. Good on em, I guess.
Side note, there is an Antitrust Class Action lawsuit naming Robinhood and others as defendants.
In Closing
I like conspiracies, and these companies definitely goofed. Based on my transcription of the Conversation between Elon Musk and Vlad Tenev (Robinhood CEO), I have my beliefs that the brokerages are the pawns.
The fall back guy, the sacrificial pawn, the scape goat.
I sort of feel bad for them, because I think they got used by someone from the shadows, and tossed aside like a cheap prostitute. I want to forgive them, but I definitely won’t use their services until they earn back my trust.
The media and tabloid (and already congress) are going to rip up RobinHood as if they were the start of the negligence. Hopefully eToro too.
eToro will probably do fine, because it has a lot of passive copy traders and Crypto Kitties that don’t really care.
My thoughts is that this goes a lot deeper and there should be an investigation of the DTCC, NSCC, and the hedge funds. Because something is just not adding up (especially with the theories of Stock Counterfeiting and Stock Laundering).
I also mentioned that I like conspiracies, and they’re juicy.
Especially if they’re real,
*Not Valid Financial, Legal, Life, or Any Advice.