Robinhood, the stock-trading app that launched into public discourse after frenzied “meme stock” investments forced the company to freeze trading earlier this year (2021), is facing considerable legal trouble and punitive fines following charges of spreading false and misleading information. The company’s struggles come at an odd time; after a disappointing IPO, Robinhood seems to be benefiting from the same kind of trading mania that drove meme stocks like AMC and dogecoin through the roof. But growing concern over the company’s reliance on unpredictable (and unregulated) cryptocurrency trading as its primary revenue driver has contributed to skepticism over Robinhood’s future, particularly as reports on cryptocurrency’s deleterious environmental impact come to light.
Can Robinhood Survive Its Legal Troubles?
- Publisher:SAGE Publications: SAGE Business Cases Originals
- Publication year:2021
- Online pub date:
- Discipline: Finance, Financial Investment/Analysis, Sustainability in Business
- Contains:Teaching Notes
- Length:748 words
Region:Northern AmericaCountry:United States of AmericaOrganization:RobinhoodOrganization Size:Type:Online ISBN:9781529792287Copyright: © Kelsey Lawrence 2021