To better understand why Robinhood is so popular among millennial investors, it’s best to think about game design. The Robinhood stock trading app feels and plays very much like a video game, but of course, it’s a stock-trading game. The ‘in-game’ purchases are equities and options of real publicly traded companies.
During the pandemic, the platform erupted with young inexperienced traders, who could approve themselves on the app as ultra-sophisticated traders with the touch of a button. To date, Robinhood has close to 20 million users.
As we sadly detailed here, the devastating suicide of 20-year-old Alex Kearns last June, after discovering he faced a loss of over $700k on his massively-levered options account, exposed the very real downside of the speculative mania in the stock market.
In a note left for his family, Kearns said he had “no clue about what I was doing” and never intended to “take this much risk.”
On Monday, Kearns’ parents filed a lawsuit, first obtained by CBS News, which accused Robinhood of “wrongful death, negligent infliction of emotional distress, and unfair business practices.”
In the lawsuit, Dan and Dorothy Kearns allege Robinhood purposely targets young inexperienced customers, then within the app pushes them to engage in highly complex trades. – READ MORE
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