---
title: "People are waking up to the massive rentseeking behavior enabled by…"
date: 2021-01-28
source: facebook
type: Archer T. Ships shared a link.
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# People are waking up to the massive rentseeking behavior enabled by…

*January 28, 2021 · Facebook*

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[https://www.forbes.com/sites/rogerhuang/2021/01/28/as-robinhood-shuts-down-gamestop-shares-demand-emerges-for-decentralized-censorship-resistant-trading/?sh=625f6de55028](https://www.forbes.com/sites/rogerhuang/2021/01/28/as-robinhood-shuts-down-gamestop-shares-demand-emerges-for-decentralized-censorship-resistant-trading/?sh=625f6de55028){target="_blank"}
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People are waking up to the massive rentseeking behavior enabled by government controlled markets.\
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\"Robinhood derives a large amount of value from its relationship with Citadel Securities. In return for access to order data, Robinhood has sold about \$69 million of information in 2018 to give firms like Citadel Securities more information than is available to retail investors --- specifically, first access to trade patterns a few milliseconds before they get filled. This was said to be about more than 40% of Robinhood's total revenue in 2018 by three anonymous sources in Bloomberg, something that looks to have invited a SEC probe.\
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This allows for automated trades to have an edge with faster data than the rest of the market. The old adage holds true here --- if you're not paying for the product (after all, Robinhood built its userbase on the premise of commission-free trades) then you probably are the product.\"\
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[https://www.forbes.com/sites/rogerhuang/2021/01/28/as-robinhood-shuts-down-gamestop-shares-demand-emerges-for-decentralized-censorship-resistant-trading/?sh=625f6de55028](https://www.forbes.com/sites/rogerhuang/2021/01/28/as-robinhood-shuts-down-gamestop-shares-demand-emerges-for-decentralized-censorship-resistant-trading/?sh=625f6de55028){target="_blank"}
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