Elon Musk interviewed Robinhood CEO Vlad Tenev on Sunday evening on the audio app Clubhouse. He requested Tenev about why Robinhood stopped customers from buying and selling “meme shares” similar to GameStop.
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This story initially appeared on Business Insider
The GameStop inventory saga took a brand new activate Sunday evening when Tesla CEO Elon Musk unexpectedly interviewed Vlad Tenev, the CEO of the buying and selling app Robinhood, on the brand new audio app Clubhouse.
Robinhood was the goal of widespread outrage final week when it stopped users from purchasing shares of GameStop, AMC, BlackBerry, and different so-called meme shares that had rocketed over the week, fueled by Reddit customers.
Musk went on Clubhouse for a wide-ranging interview by which he spoke about his plans to colonize Mars, his neural-technology firm Neuralink, and his love of memes. On the finish of the interview, Musk introduced in Tenev, introducing him as “Vlad the inventory impaler.”
“Spill the beans, man, what occurred final week? Why could not individuals purchase the GameStop shares?” Musk stated. “The individuals demand a solution, they usually wish to know the small print and the reality.”
Tenev stated Robinhood had been compelled to briefly cease customers from shopping for these shares as a result of the surge resulted in a deposit requirement of $3 billion from the Nationwide Securities Clearing Company. Robinhood had raised solely $2 billion in enterprise capital, so it spoke with the NSCC to get that requirement lowered to $700 million, Tenev stated.
His remark echoed a statement from Robinhood on Friday.
Vlad Tenev, a cofounder and CEO of Robinhood.
Picture Credit score: Noam Galai | Stringer | Getty Photographs through Enterprise Insider
Tenev stated that the NSCC’s decision-making course of to get to the $3 billion determine was “opaque” and that it was exhausting to know why it settled on that.
“Did one thing possibly shady go down right here?” Musk stated.
Tenev answered that he would not say so and that the NSCC had been cooperative after the preliminary $3 billion deposit request.
Musk additionally requested whether or not Citadel, a significant hedge fund and middleman for Robinhood, may have influenced the NSCC’s resolution.
“There was a rumor Citadel or different market makers type of pressured us into doing this,” Tenev stated, “and that is simply false.”
“However would not they’ve a powerful say in who obtained put accountable for that group, because it’s an business consortium and never a authorities … regulatory company?” Musk stated.
Tenev stated he did not “have any motive to consider” that. “Then you definately’re moving into the conspiracy theories somewhat bit,” he stated.
Musk often chimed in through the interview with jokes; at one level he requested Tenev, “Is anybody holding you hostage proper now?”
Most of the Reddit merchants stated a motivation for galvanizing meme shares was to take on hedge funds with heavily shorted stocks. Musk, who has traditionally attacked short-sellers, has been described as a type of folk hero for Reddit day merchants.
This wasn’t the primary time Musk demanded solutions from Robinhood. Final week, he expressed support for Rep. Alexandria Ocasio-Cortez’s call for the Home Monetary Companies Committee to carry a listening to on the app’s actions.
Robinhood allowed buying and selling of meme shares to renew on Monday with some restrictions.