Following a controversial decision to temporarily block the purchase of GameStop stocks last week’s Reddit-coordinated run at hedge funds that were shorting shares of the gaming retailer, Robinhood is hoping a new Super Bowl ad will restore confidence in the investment app. Granted, the 30-second spot was purchased back in December, well before Robinhood became sucked into the Reddit traders’ plan, but the company wrote in a blog post on Wednesday that it wants the ad to reaffirm its mission to “democratize finance for all.” Via Robinhood:
We built Robinhood for our customers, for the millions of people who have felt left behind by America’s financial system. We’re in this for the early morning jogger, the midday study breaker, the late-night nursery rhymer—because we all invest in ourselves every day.
We are all investors.
Despite the Super Bowl’s ad attempt to regain user confidence, Robinhood is facing an uphill battle. The investment app’s CEO Vlad Tenev was grilled by Elon Musk on Monday as the space magnate demanded answers for why Robinhood blocked users from purchasing GameStop stocks and others like AMC because of “market volatility.” While the company eventually reversed the ban within 24 hours, the damage was already done. However, Tenev told Musk that the company legally had no choice, and that its hands were tied by regulations from the National Securities Clearing Corporation. Musk seemed to buy that answer, but the app is still reeling from users fleeing after the GameStop block. It also hasn’t helped that Mark Cuban blamed the app for the recent fall in GameStop stock prices by dubbing it the “Robinhood Dive.”
(Via Robinhood)