Musk angered Robinhood CEO: "People are asking for an answer!"

in hive-133802 •  4 years ago 

On the voice social platform Clubhouse, the world's richest man and Tesla founder Elon Musk questioned the CEO of the trading platform Vlad Tenev about Robinhood's suspension of certain stock trading.

On the voice social platform Clubhouse, the world's richest man and Tesla founder Elon Musk questioned the CEO of the trading platform Vlad Tenev about Robinhood's suspension of certain stock trading.

He asked Tenev, "What happened last week? Why can't people buy GameStop stock on Robinhood? People are asking for an answer!"

Tenev explained that some "nostalgic stocks" showed "unprecedented high trading volume" late last week, and many people entered Robinhood to buy these stocks. At that time, in the early hours of Thursday morning, Robinhood received a deposit request document of approximately $3 billion from the National Securities Clearing Corporation (NSCC).

He said that as a company that also has clearing brokerage capabilities, “we have to submit funds to NSCC based on some factors. NSCC’s requirements are an order of magnitude more than usual. At that time, Robinhood had raised about $2 billion in funds.”

Musk then asked if there was a "shadow" in this, which was denied by Tenev. Tenev had also been "hijacked" otherwise, and said it was a "tense" experience. After agreeing to manage risks and setting "close only" on certain stocks, the regulator agreed to reduce the size of its required deposits to $700 million.

Tenev said, "We know this is a bad result for customers. Robinhood represents the democratization of stocks. But in this case, we have no choice. We must meet our regulatory capital requirements."

He explained, “To be fair, there is reasonable turbulence in the market and additional risks in the system, so it is not completely unreasonable for NSCC to put forward higher requirements. Many other brokers have the same situation. It also restricts the same activities."

Musk asked, did Robinhood "betray its customers"? Tenev said that Monday morning the trading platform will "relax position control in certain stocks." He also insisted that Robinhood is a "participant in the financial system" and that the financial system is a "complex network of multiple parties."

According to BitTweet, the Wall Street Journal said on Monday that Robinhood received a $2.4 billion in capital injection from shareholders to help scale up from the recent market turmoil. Since January 29, Robinhood has raised a total of US$3.4 billion from investors, more than all the funds previously raised by the company.

In the same event, Musk also mentioned his "Mars Project." He said he will land on Mars in five and a half years, but his children don't like the idea of ​​landing on Mars. When asked if he believes in aliens, Musk said that there is no conclusive evidence to prove the existence of aliens, but this does not mean that there are no aliens.

On social platforms Clubhouse voice conversation with activities Andressen Horowitz and other investors, the horse Gdansk represent bitcoin will be more widely used in the traditional financial sector.

According to a previous report by "Beijing", just last week, Musk set his Twitter profile as "Bitcoin", which also caused the price of Bitcoin to rise by more than 14% in 30 minutes.

During the conversation, Musk said, "I do think Bitcoin is a good thing. I am a supporter of Bitcoin. I think Bitcoin is about to be widely accepted by the traditional financial industry."

He also mentioned that many of his friends had persuaded him to buy bitcoins in the past, but he was “late” and he should have bought some bitcoins in 2013.

Dogecoin, another cryptocurrency related to him, has also been gaining momentum in the past period of time.

Musk admitted that he "occasionally makes some jokes about Dogecoin", he mentioned, "It's really just a joke, but you know Dogecoin itself is a joke used to make fun of cryptocurrencies. But destiny likes irony, just like mine. As a friend said, the most ironic or interesting result is that Dogecoin will become the currency of the earth in the future."

According to comparison data, as of press time, the price of Bitcoin, the cryptocurrency with the highest market value, is $33,744, and the price of Dogecoin is $0.04.

Image source: pixabay

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