Beautiful Virgin Islands

Saturday, Jul 05, 2025

Robinhood's CEO rejects his app allows for the 'gamification' of investing, and denies using rewards and confetti animation to encourage trading

Robinhood's CEO rejects his app allows for the 'gamification' of investing, and denies using rewards and confetti animation to encourage trading

"Even though we have made investing easier, we recognize it is not a game," Tenev said in his testimony ahead of a Congressional hearing.
Robinhood CEO Vlad Tenev rejected claims his app allows for the "gamification" of investing.

Tenev, in his newly released testimony ahead of a Thursday Congressional hearing into January's GameStop trading frenzy, said Robinhood has made investing easier for a broader range of people. Tenev and his co-founder Baiju Bhatt said they created Robinhood, a commission-free investing site, to "democratize" finance.

"Even though we have made investing easier, we recognize it is not a game," Tenev said in the testimony.

Several industry experts and investors said the app takes advantage of its young and inexperienced user base by encouraging risky trades. A game developer previously told Insider Robinhood's use of free gifts, rewards for bringing in new users, and glowing colors can deepen users engagement and relationship with the app.

Regulators are also examining whether a "gamified" product design leads Robinhood users to make risky trades they don't fully understand.

The consequences of risky Robinhood use can be disastrous, some users said. One user told The New York Times he took out two home equity loans to buy and sell options, but ended up losing thousands of dollars. The parents of a 20-year-old who died by suicide after thinking he lost $730,000 filed a wrongful death lawsuit against Robinhood earlier this month.

According to Tenev's testimony, Robinhood has encouraged investing among young people, people of color, and first-time traders. The median age of Robinhood users is 31 and half of customers identify as first-time investors. Black and Latino users represented 9% and 16% of Robinhood customers, respectively.

Robinhood makes money through payment for order flows, or by taking the buy and sell orders that users place and selling them directly to large trading firms. The business model means Robinhood benefits the more users make trades.

One December 16 complaint filed against Robinhood claims the company used visual strategies, including confetti celebrations, when users make trades, to "gamefy" trading and encourage repetitive use of the app.

Tenev said in his testimony the app uses confetti animation "sparingly" to celebrate milestone events. He denied that Robinhood used levels or rewards to encourage more trading.

"I am confident that the easy-to-use interface enables customers to understand, control, and direct their finances in a responsible way," he said.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
King Charles Plans Significant Role for Prince Harry in Coronation
Two Chinese Nationals Arrested for Espionage Activities Against U.S. Navy
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
Texas Enacts Law Allowing Gold and Silver Transactions
China Unveils Miniature Insect-Like Surveillance Drone
OpenAI Secures Multimillion-Dollar AI Contracts with Pentagon, India, and Grab
×