• thethirdgracchi [he/him, they/them]
      ·
      3 years ago

      But their hedge fund customers only care about them because they sell their trading book info so their algorithmic trading algorithms can make tiny amounts of profit right before those trades execute. If they have no trading book to offer those hedge funds because all the retail traders leave the app, they have no revenue stream whatsoever and their hedge fund clients will drop them like a rock.

        • read_freire [they/them]
          ·
          3 years ago

          then they would've lost their biggest customer

          the real victory today was robinhood getting crushed by charybdis after dodging scylla

          but your analysis is right. losing citadel is nowhere near as existential as losing your product* (ty sysgen)

            • TheCaconym [any]
              ·
              3 years ago

              I'm not sure they even care that much - they had a huge leap year bug in 2016 that resulted in an outage. 4 years later, in 2020, they had the exact same bug. 4 years to fix it and they didn't, so I'm wondering if they even expected to last this long.

              Maybe they'll end up closing shop and starting a new company with a new shitty app, perhaps even with the same codebase.

          • sysgen [none/use name,they/them]
            ·
            3 years ago

            Robinhood only makes money from interest and selling order streams to Citadel. They don't really make money from retail users.

            • read_freire [they/them]
              ·
              3 years ago

              retail users are their product. they don't have anything to sell citadel w/o them

              • sysgen [none/use name,they/them]
                ·
                3 years ago

                True. They were between a rock and a hard place. I guess getting of Citadel might have been better long term.