Robinhood, the popular trading app has announced the delisting of popular Gamestop (GME) stocks after restricting its trade yesterday to sell only. The decision received heavy backlash from everyone especially the crypto community.
What RobinHood did is truly disgusting. I hope that people leave that app in droves and they face enough lawsuits to put them out of business. $AMC $GME $BB $NAKD
— Frederick Joseph (@FredTJoseph) January 28, 2021
Robinhood trading app also faced multiple outages yesterday owing to the surge in price and high trading volume on the spot and heavy liquidation of short positions, at one point more than $13 billion.
Brokerage apps like Robinhood face major outages following surges in trading volume as the Reddit/Wall Street Bets trading saga continues. https://t.co/03gnvDK02K pic.twitter.com/5FrbIwsqGk
— CNBC (@CNBC) January 28, 2021
Gamestop stocks have become the talk of the town post its price surge yesterday over $300 which was largely pushed by a Reddit group wallstreetbets in what eventually turned into retail vs banker trade battle.
Nasdaq came to many short buyers’ rescue when it halted the trade of GME tokens calling it a manipulation owing to its social media hype. Robinhood followed the suite and halted all buy trades for spot and options.
Robinhood Draws Heavy Backlash Calls Amid Calls For Decentralization
The decision by the robinhood trading app didn’t go down well with many especially the crypto community who were rooting for Gamestop to liquidate more short positions. The delisting and halting of trade also rose the demands for a more decentralized platform where it is not driven by a monopoly of a few at the top.
Robinhood delisting $GME reminds me why I am so bullish on decentralisation.
— yTedd (@TeddyCleps) January 28, 2021
The crypto community was rallying behind GME as it shares a similar belief of shorting the bankers and was already calling for the company to invest in bitcoin and list their stocks on crypto exchanges via tokenization.
Many believe that Wall Street has resorted to bullying tactics as they are losing the trade game against retailers.
the fact that the wealthy are doing everything in their power to pressure robinhood and other apps to cease purchases of stock in GME AMC etc. just goes to show that they're scared of what we're collectively capable of. im gonna do my best to keep holding however long i can
— Michael Kovach (@kovox) January 28, 2021
Many even called for class-action lawsuits against the trading app for causing losses to traders for leaving them with no option but to close their high-profit position. Many would eventually go to court as well owing to surging GME stock price despite multiple haltings.
class action lawsuit against #robinhood ?$BB $AMC $GME $NOK#wallstreetbets pic.twitter.com/d19R0frlxv
— sworup (@sworupranjit) January 28, 2021
All eyes are now on Gamestop to see what they do next with multiple teasing platforms resorting to halt their stock trades as well as delist them.
