Public, an online brokerage, is poised to challenge the Robinhood trading platform. Robinhood, a popular online brokerage platform, makes investing easy with its mobile app. This "commission-free service" is extremely popular with younger generations because it offers access to stocks, options, and exchange-traded funds (ETF) investing.
This year we've been talking a lot about Robinhood since it was fueling the GameStop trading controversy as well as the pumping and dumping of "meme" stocks.
The company suddenly changed its tune. It stopped purchases and restricted accounts. In some cases, it even sold stock on customers' behalf without their consent. Robinhood was unable to meet its margin calls. It ran out of liquidity and had to stop trading; it was forced to sell customer stocks and raise additional capital to get back on solid feet.
The result was a flood of negative reviews. One-star reviews of as many as 10,000 were submitted in just a few hours. However, they were removed by Google, a significant investor in Robinhood's Series D round.
Robinhood's poor business decisions showed that it did not value the 31 million customers it served and treated them like a product. Robinhood's stupidity is now opening the door to the Public platform, a new competitor.
This mobile-first company is gaining popularity every day. It is similar to Robinhood and allows customers to trade, invest, mirror other investors, and create their portfolios.
The Public, like Robinhood, is also preparing to provide users with access to cryptocurrency. It will begin with eleven cryptos, and it will likely grow over time.
Apex Crypto, a third-party company, uses the Public to execute orders and take custody of assets. It's opening up a new investment category to its users by doing this.
The company wants to appeal to the younger generation that initially drew to Robinhood. It appears to be working. According to the Public, its user base increased ten-fold between 2020 and now.
The Public raised $220 million in Series D financing rounds in February. After it raised $65 million in December, the company held a Series D financing round to raise $220 million. It now has a value of $1.2 billion, which is considered unicorn status.
This is a remarkable feat and reflects the desire for mobile-first brokerages that target younger customers. Public, with Robinhood's recent issues, is in a solid position to lead - Invest wisely.