Last Wednesday options traders using Robinhood were unable to access the app and were unable to make any trades. Some traders lost a significant amount of money due to this outage. As a way to try to make up for some of these losses Robinhood is offering up to $450 in Amazon gift cards via e-mail, according to the e-mail they were targeted as a result of an evaluation done by data scientists and senior members of the Robinhood team.
I suspect what is happening in reality is that high value customers are being offered something, whereas low value/volume customers receive nothing despite any perceived or real losses. Options trading is one of the few things Robinhood makes money on. Some people also thought that the announcement of the Robinhood 3% APY account was ill timed considering the options trading downtime had only occurred a few days before. I think the announcement of that product was ill time considering the insurance they claimed would cover that account apparently won’t and they have now had to commit to a product refresh ahead of launch.
If anybody received such an e-mail from Robinhood, please share the subject line in the comments below.
Hat tip to DDG
this is why little kids need to stop using n00b platforms and learn on real shit.
There was a story in the WallStreetBets reddit about a guy who had $10k in his account but Robinhood messed up his options purchase/sale so he had about $12m (yes, million) of exposure. He was lucky and when the trade closed out he was up another $10k but could of easily been down $100k+…. I’m sure $450 to amazon would make up for any losses someone suffered
*could have
Funny they name themselves Robinhood and are living exactly to their name. They just stole from the rich, who’s now poor, and give’s them back $450 gift cards.
Can you post the link? Thanks! Wanna have a look at this story