After an action orchestrated by independent investors on Reddit, the finance platform Robinhood blocked the purchase of shares in companies like GameStop and AMC. The application was being used as the main means of negotiation for a movement aimed at valuing the assets of nearly bankrupt companies to generate losses for large investment funds.
The Robinhood platform is known for offering freedom to independent investors, but the unusual movement on the stock exchange has caused the company to impose limits on its platform. According to the company, the blockade is due to “current market volatility”.
In addition to GameStop and the AMC theater chain, other stocks that have experienced an unusual rise cannot be traded on the app. Robinhood users are also prevented from buying assets from BlackBerry, Nokia and Bed Bath & Beyond.
The company also said it is expanding the Robinhood Learn website, which includes educational articles on finance. With the unusual movement of the stock exchange in the United States, the company said it is willing to help new investors to enter the stock market safely.
The restrictions imposed by Robinhood were not welcomed by users. In social networks, the platform is being accused of promoting market manipulation with the attitude.
The change announced by the application came to gain the attention of parliamentarians in the United States. Rashida Tlaib, of the Democratic Party, called the restrictions “absurd” and said he would hold a debate on the matter with the country’s Financial Services Committee.
It is worth mentioning that Robinhood is not the only platform to block the trading of shares in GameStop and AMC and renowned institutions have also taken similar measures. Even so, the case of the application raises concern because, according to Motherboard, more than half of the platform’s user base uses the service to trade the assets of blocked companies.