Reuters / Jason Redmond
- Dr Cesar Albarran-Torres is a senior lecturer in media and communications at Swinburne University of Technology in Australia. users who borrow seemingly endless amounts of cash and turn thousands of dollar deposits into million-dollar positions – have shown the dangers of investing in a game.
- "The endless glitch engraving in Robinhood has proven how stock-trading apps are built into video games and as gambling platforms," he said.
- "Trading casualties make more money, like a token in a video game, so users tend to treat it as a game credit rather than actual cash," he added . "It makes gaming the system not such a big deal, but rather a playful and non-sequential action."
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The "endless money" glitch of Robinhood ̵1; which enabled premium users to borrow seemingly endless amounts of cash and turn thousands of dollar deposits into million-dollar positions – presented risks of investing in a game, an expert said.
"The endless glitch engraving in Robinhood has proven how stock-trading apps are built as video games and as gambling platforms," Dr Cesar Albarran-Torres, a senior lecturer in media and communications at Swinburne University of Technology in Australia, told Business Insider.
His current research focuses on "gambling play" or platforms where gambling and interactive media intersect.
Robinhood and similar apps position themselves as tools to make investing "more affordable, easier to understand, and more fun" regardless of users & # 39; experience level. However, their efforts to open financial markets to a general audience include eliminating the complexities and risks of trading, and participating in "gamification" or introducing elements of games such as reward for development and engagement. more money, like a token in a video game, so users tend to treat it as a credit card rather than actual cash, "Albarran-Torres said." This makes gaming the system not like a big deal, but rather a playful and inconsistent act.
"This is not the case, of course, and there are many ethical and legal implications," he added.
Online communities, where app users exchange tips and share their experiences, can also fuel the flow of investment treatment like a game.
Many members of WallStreetBets – a subreddit with the tagline "Like 4chan found a Bloomberg terminal" – detailed their use of Robinhood's "endless cheat cheat code," posting pictures showing of their million-dollar positions, and for example not one.
Another member, Eddie Choi, spoke to Business Insider about becoming an overnight celebrity after finding out about trading options on the subreddit then making less than $ 1,000 to more than $ 100,000 there are two trades.
Robinhood shut down the "never-ending money" loophole and suspended accounts it exploited last week. Around 20 users abused the bug and the startup & # 39; the estimated losses amount to less than $ 100,000, Bloomberg reported, adding that Robinhood is discussing questions from regulators and could face a fine on the incident. They are informed that their accounts are limited to closed-trading only, and that they must fix a negative balance within 60 days or be held liable for the remaining value.