RAPPER Ja Rule branded the stock app Robinhood as "criminal" days after amateur traders used the app to send the stock market spiraling into chaos.
Ja Rule's comments about Robinhood come after the stock app faced criticism after stopping users from buying and selling GameStop shares.
What did Ja Rule say about Robinhood app?
Ja Rule told Rolling Stone that he's been using the Robinhood app since 2014, but the company's recent decision to restrict certain stocks left him "very upset."
"They hedge fund guy shorted these stocks now we can't buy them ppl start selling our of fear … we lose money they make money on the short … THIS IS A F**KING CRIME!!!" the rapper tweeted on Thursday.
In his Rolling Stone interview, Ja Rule, whose real name is Jeff Atkins, spoke about how he's been following the WallStreetBets Reddit group/Robinhood app saga.
"The big Wall Street guys have been shorting these stocks. These guys decided to make the stock go through the roof, which in turn makes the big whales that shorted the stock now have to buy it," Ja Rule said.
"…That helped the little guy make a lot of money and I thought that was very interesting. It was an uprising of people tired of getting pushed around."
The rapper went on to to sing Robinhood's praises, though he did disparage the company for restricting stocks – a move many have suggested was the app's creators bowing to Wall Street giants.
"I love Robinhood," the rapper said. "You know what's so crazy: Just a day ago, I tweeted great things about Robinhood, telling people it's an amazing app and everyone should get it.
"And then this happens and I'm like, wow, what a difference 24 hours makes.
"I still think the concept is amazing – putting the power of trade in people's hands. It gave you the feeling of being on the [trading] floor … Then this, today, when they shut off all those stocks? That felt very wrong."
Why has Robinhood stopped trading GameStop?
A group of amateur traders – who organized on Reddit – came together to send the stock prices for struggling companies like GameStop and AMC Entertainment skyrocketing.
The move sent major hedge funds scrambling and sent the status quo of the stock market into such chaos that Robinhood temporarily paused buying on the companies that were targeted by the Reddit gang.
Stock sales on GameStop and several others resumed on Friday, but there was a limit on how much stock users could buy.
Who owns Robinhood?
The Robinhood app launched in 2015 based on simple principles, to open stock trading to the people.
Robinhood was created by Vladimir Tenev and Baiju Bhatt.
Source: Read Full Article