- Vlad Tenev, the cofounder and CEO of Robinhood, has played a significant role in the GameStop stock surge.
- This surge, fueled by retail traders using the subreddit r/WallStreetBets, led to GameStop’s stock reaching an unprecedented $483 per share.
- A new movie called “Dumb Money” narrates the GameStop surge and the subsequent government investigation into Robinhood’s shutdown.
The newly released movie “Dumb Money” immerses viewers in the thrilling story of the GameStop stock surge in 2021. This extraordinary event witnessed the rise of retail traders, driven by the subreddit r/WallStreetBets, who collectively boosted the stock to an astounding $483 per share. As a result, ordinary individuals like Keith Gill, portrayed by Paul Dano in the film, reaped millions while causing significant losses for hedge funds.
Wall Street had never witnessed such a David versus Goliath battle, which coined the term “meme stock.” Robinhood, the investing app created by Baiju Bhatt and Vlad Tenev, played a pivotal role in enabling this phenomenon, allowing users to easily purchase stocks with a simple swipe.
Just before the GameStop short squeeze, Robinhood CEO Tenev was on the brink of launching an IPO, positioned as a billionaire. However, the unprecedented surge changed everything. Robinhood suddenly halted trading on GameStop, causing panic among retail traders who sold their shares, believing the stock had peaked. Unfortunately, Robinhood lacked the necessary collateral to pay its clients, leading to the movie’s depiction of a panicked shutdown.
Tenev, portrayed by Sebastian Stan in the film, faced severe criticism for this decision. Robinhood was subsequently hit with dozens of lawsuits accusing the company of market manipulation.
A month later, Tenev testified before the United States House Committee on Financial Services, where he faced further scrutiny for his lack of clear answers to several questions.
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