, Warren Buffett's right-hand man and Berkshire Hathaway vice chairman, has slammed the trading app Robinhood, saying the company is now"unraveling."
Munger blasted what he describes as Robinhood's"short-term gambling, big commissions, hidden kickbacks, and so on." Robinhood does not charge commissions to customers and makes the majority of its gains from"payment for order flow," which is a back-end fee paid to brokerages for channeling clients' trades to market makers.
Munger described this as"disgusting," saying,"Now it's unraveling. God is getting just." Munger initially attacked Robinhood's practices in February 2021 amid a trading frenzy while calling the app's business model a"dirty way of getting money.
In early April, Robinhood began rolling out crypto wallets to the more than two million people on its waiting list, and it recently completed deployment to all customers. In the past month, it also decided to buy Ziglu Ltd, a cryptocurrency platform based in the United Kingdom. In addition, Robinhood added four more crypto assets to its platform: Compound, Polygon, Solana and Shiba, Inu, with more on the way.