Popular podcaster Joe Rogan has criticized trading app Robinhood after they chose to restrict trading on GameStop stock on Thursday, January 28.
The recent GameStop trading outbreak has been one of the biggest stories of 2021 so far. Starting on Reddit, thousands of users decided to purchase stocks, seeing the company’s value skyrocket and sending tremors through Wall Street.
Responses varied, with some enjoying the shake up and others concerned about its wider repercussions on the markets.
Robinhood, a commission free stock trading app, was one of the main platforms used by individual traders purchasing GameStop shares. However, it garnered significant backlash after restricting the trading of GameStop stock, with users pointing out the hypocrisy of describing itself as an investment site for everyone.
The condemnation came from many, but popular podcaster and current affairs commentator Joe Rogan has now joined the criticism of the trading platform.
Rogan has praised the traders previously, stating that they exposed Wall Street “manipulation”. Now, in another clip from his Joe Rogan Experience podcast, he has targeted Robinhood for their attempted inhibition of GameStop trading.
“So then this app, called Robinhood,” Rogan said, explaining the situation for guest Jamar Neighbors. “Robinhood is supposed to be steal from the rich give to the poor – that’s the story of Robinhood. Instead, they are protecting all these hedge fund people and stopping people from doing this.”
“Now, regular folks on Reddit are starting to do the exact same thing,” he continued. “And they [Robinhood] are trying to figure out a way to stop these people from doing this…. Normal people are being penalised for figuring out a new way to hack the system that Wall Street have been manipulating forever.”
Robinhood has since claimed that they were forced to stop trades because of the process of recording the trades with a clearinghouse. They said: “the required amount we had to deposit with the clearinghouse was so large—with individual volatile securities accounting for hundreds of millions of dollars in deposit requirements—that we had to take steps to limit buying in those volatile securities to ensure we could comfortably meet our requirements.”
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Rogan’s issues are similar to many, who claim that it is deeply hypocritical for Robinhood to prevent “normal people” from making money, on an app designed to allow anyone to invest.
Robinhood has been receiving hundreds of thousands of negative reviews off the back of the incident, leading to Google removing many 1* reviews from their site. The saga continues, but Joe Rogan has set out his stall.