{"id":35695,"date":"2021-02-01T20:43:49","date_gmt":"2021-02-01T18:43:49","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=35695"},"modified":"2025-08-29T02:32:51","modified_gmt":"2025-08-28T23:32:51","slug":"robinhood-co-founder-explains-trading-halt-to-elon-musk","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/robinhood-co-founder-explains-trading-halt-to-elon-musk\/","title":{"rendered":"Robinhood co-founder explains trading halt to Elon Musk"},"content":{"rendered":"<p>The crypto-friendly platform Robinhood paused trading of GameStop shares and several other assets to protect the service and its customers. This was stated by Vlad Tenev, co-founder of the platform, according to <a href=\"https:\/\/techcrunch.com\/2021\/01\/31\/elon-musk-goes-live-on-clubhouse-but-with-the-room-full-fans-stream-audio-on-youtube\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">TechCrunch<\/a>.<\/p>\n<p>A Robinhood spokesperson joined the discussion with Tesla and SpaceX founder Elon Musk on the media platform Clubhouse. Musk asked Tenev to clarify the reasons behind Robinhood&#8217;s trading restrictions.<\/p>\n<p>According to the platform&#8217;s co-founder, on January 27 the system faced an &#8220;unprecedented load&#8221; amid the GameStop stock pump.<\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"6KNZ0GpjKi\">\n<p><a href=\"https:\/\/u1f987.com\/en\/news\/robinhood-at-the-centre-of-the-gamestop-dogecoin-and-reddit-trader-scandal\">Robinhood found itself at the centre of the scandal surrounding GameStop shares, Dogecoin and Reddit traders<\/a><\/p>\n<\/blockquote>\n<p><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; visibility: hidden;\" title=\"\u201cRobinhood found itself at the centre of the scandal surrounding GameStop shares, Dogecoin and Reddit traders\u201d \u2014 ForkLog\" src=\"https:\/\/u1f987.com\/news\/robinhood-privlekla-vnimanie-kongressa-ssha-posle-zapreta-na-torgovlyu-aktsiyami-gamestop\/embed#?secret=JDRdB5USAu#?secret=6KNZ0GpjKi\" data-secret=\"6KNZ0GpjKi\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p>On January 28, Robinhood received a $3 billion deposit request from the National Securities Clearing Corporation (NSCC). It exceeded the $2 billion in investments the service had raised since 2013.<\/p>\n<p>According to Tenev, the request was justified: given high market activity, the system needed to account for additional risks.<\/p>\n<p>The amount was reduced to $1.4 billion, and later the NSCC again revised the sum and cut it to $700 million. However, before that, the Robinhood team had to flag volatile stocks and disable their purchases.<\/p>\n<blockquote>\n<p>&#8220;We had no choice, we had to meet the capital requirements. And so the team did everything possible to keep the service available to all customers,&#8221; said Tenev.<\/p>\n<\/blockquote>\n<p>On February 1, Robinhood <a href=\"https:\/\/robinhood.com\/us\/en\/support\/articles\/changes-due-to-recent-market-volatility\/?region=US\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">kept the limits<\/a> for the shares of GameStop Corp., AMC Entertainment Holdings Inc., BlackBerry Ltd., Express Inc., Genius Brands International Inc., Koss Corp., Naked Brand Group Ltd. and Nokia Oyj.<\/p>\n<p>In addition, in the conversation with Musk, the platform&#8217;s co-founder denied that the market maker Citadel pressured Robinhood to halt trading in the stocks.<\/p>\n<p><strong>Update<\/strong>: Robinhood said it had raised $3.4 billion in four days. The funds will help the service scale to meet unprecedented demand, the company said.<\/p>\n<p>The round was led by Ribbit Capital. Investors included ICONIQ Capital, Andreessen Horowitz, Sequoia and Index Ventures.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">We\u2019ve raised $3.4 billion to invest in record customer growth. With this funding, we\u2019ll build and enhance our products that give more people access to the financial system. <a href=\"https:\/\/t.co\/4gcfY5PCBa\">https:\/\/t.co\/4gcfY5PCBa<\/a><\/p>\n<p>\u2014 Robinhood (@RobinhoodApp) <a href=\"https:\/\/twitter.com\/RobinhoodApp\/status\/1356286752768446475?ref_src=twsrc%5Etfw\">February 1, 2021<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to CNBC, as a result of the GameStop rally, hedge fund Melvin Capital lost 53% of capital in January. The cumulative losses for short-sellers on GME in the past month were estimated at $19.75 billion.<\/p>\n<p>On February 1, the price of GME fell by more than 20% to around $250. Yet this remains well above the December price against which shorts had bet.<\/p>\n<p>On January 28 a group of investors <a href=\"https:\/\/u1f987.com\/en\/news\/robinhood-at-the-centre-of-the-gamestop-dogecoin-and-reddit-trader-scandal\">filed a class-action suit<\/a> against Robinhood, accusing it of deliberate and conscious deprivation of private traders&#8217; ability to invest.<\/p>\n<p>Subscribe to ForkLog news on Telegram: <a href=\"https:\/\/t.me\/forkloglive\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">ForkLog FEED<\/a> \u2014 the entire news feed, <a href=\"https:\/\/telegram.me\/forklog\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">ForkLog<\/a> \u2014 the most important news and polls.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The cryptocurrency-friendly Robinhood platform paused trading of GameStop shares and several other assets to protect the service and its customers. This was stated by Robinhood co-founder Vlad Tenev, according to TechCrunch.<\/p>\n","protected":false},"author":1,"featured_media":35696,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1217,1243,1234],"class_list":["post-35695","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-elon-musk","tag-gamestop","tag-robinhood"],"aioseo_notices":[],"amp_enabled":true,"views":"28","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/35695","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=35695"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/35695\/revisions"}],"predecessor-version":[{"id":35697,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/35695\/revisions\/35697"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/35696"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=35695"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=35695"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=35695"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}