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Written by Sam Pennington on March 23, 2023
Category: 
FTC Disclosure

How Many People Left Robinhood After Meme Stock Mania?

In 2021, Robinhood found itself at the center of a major controversy involving the trading of popular meme stocks such as GameStop and AMC.

The trading platform decided to halt buying for these securities, sparking outrage among its users and leading to a mass exodus from the app.

How Many People Left Robinhood?

But just how many people left Robinhood as a result of the scandal?

According to reports, the company lost over 1 million users from 2021 to 2022. This was a significant blow for the platform, as user growth had been a key driver of its success up to that point.

Furthermore, revenue from equities trading was down 73% during that same timeframe.

Many users were unhappy with Robinhood's handling of the meme stock trading frenzy, and some felt that the platform had betrayed its commitment to democratizing investing.

Continued Growth

Despite the negative publicity and loss of users, Robinhood has managed to weather the storm and continue its growth into 2023.

The platform has continued to innovate and add new features to its app, such as the ability to buy fractional shares and trade cryptocurrencies.

In addition, Robinhood has made efforts to rebuild trust with its users by being more transparent about its policies and procedures.

For example, the company recently published a blog post explaining how it makes money and addressing some of the common misconceptions about its business model.

Overall, while the Robinhood scandal may have caused a significant loss of users and revenue in the short term, the platform's continued growth and success suggest that it is still a major player in the world of online investing.

This article was generated using automation technology, and thoroughly edited and fact-checked by an editor on our editorial staff.

Article written by Sam Pennington
Sam is a personal finance writer. While in college, he dedicated his spare time to learning about personal finance, investing, and real estate. Sam currently works as a business analyst for one of the top food manufacturers in the world.

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