Murphy: Retail investing is not dead, it\u2019s controlling markets<\/h2>\n

Mike Murphy and Mitch Roschelle break down the GameStop controversy on ‘Maria Bartiromo’s Wall Street’<\/p>\n

Brokerage app Robinhood made headlines this week when it surfaced as a major player in the pitched contest between retail investors and hedge funds over GameStop stock. <\/p>\n

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Founded in 2013, the company launched its app in 2014, providing trading access to anyone with a phone. <\/p>\n

Robinhood has helped to democratize finance, and it provided the portal through which online communities were able to organize and start a short squeeze on hedge funds that were looking to short GameStop’s stock. <\/p>\n

After making a controversial call to stop all purchases of GameStop on Thursday, Robinhood has come under significant scrutiny, both in the public eye and in Congress. <\/p>\n

Here’s what you need to know about Vlad Tenev, the man who is already facing the consequences of Robinhood’s decisions over the past week. <\/p>\n

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Vlad Tenev, co-founder and co-CEO of investing app Robinhood, speaks during the TechCrunch Disrupt event in Brooklyn borough of New York, U.S., May 10, 2016. REUTERS\/Brendan McDermid<\/span> (Reuters)<\/span><\/p>\n

1. Tenev is living the American dream<\/strong><\/p>\n

Tenev represents the American dream: Born in Bulgaria, he migrated to America with his parents when he was 5 years old, according to his profile on Rosenblatt Securities. <\/p>\n

Tenev grew up in Washington,, D.C., and studied mathematics at Stanford University. He went on to UCLA  to earn a PhD in mathematics, but dropped out to start a company with his friend, Baiju Bhatt. <\/p>\n

The duo launched their first venture, Celeris, in 2010, but abandoned it to create Chronos research, a software firm.<\/p>\n

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Their next venture, Robinhood, would catapult the pair into a new stratosphere of industry. <\/p>\n

When the pair raised additional funding for Robinhood in 2018, the company’s valuation hit $6 billion, turning each of its founders into billionaires, according to The Focus. <\/p>\n

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NEW YORK, NY – MAY 10: Co-founder and co-CEO of Robinhood Vladimir Tenev speaks onstage during TechCrunch Disrupt NY 2016 at Brooklyn Cruise Terminal on May 10, 2016 in New York City. (Photo by Noam Galai\/Getty Images for TechCrunch)<\/span> (Getty Images)<\/span><\/p>\n

2. Tenev and Bhatt started Robinhood because of the Occupy Wall Street movement<\/strong><\/p>\n

The idea to “democratize investing” started with Tenev and Bhatt’s experiences in FinTech during the recession. <\/p>\n

The duo worked out of New York City when they attempted their first two ventures, the second of which coincided with the Occupy movement. <\/p>\n

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While other businesses were shutting down, Tenev and Bhatt were thriving, which led one of their friends to accuse them of profiting from others’ misery, according to Forbes. <\/p>\n

After some soul searching, they created Robinhood with two key goals: no commissions and no minimum balances. <\/p>\n

Those two points made Robinhood stand out compared to its rivals and helped it thrive in the early days as it pitched itself as a tool for the little guy. <\/p>\n

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MOUNTAIN VIEW, CALIFORNIA – NOVEMBER 03: (L-R) Vlad Tenev and Celina Tenev attend the 2020 Breakthrough Prize Red Carpet at NASA Ames Research Center on November 03, 2019 in Mountain View, California. (Photo by Ian Tuttle\/Getty Images for Breakthroug<\/span> (Getty Images)<\/span><\/p>\n

3. Tenev has bseen celebrated for his success…until now<\/strong><\/p>\n

Before the GameStop decision on Thursday, Tenev had enjoyed acclaim for his work. <\/p>\n

At the age of 28, Tenev was recognized as part of the Forbes 30 under 30 series for Finance.  Tenev has also been featured on the Fortune 40 under 40 lists. <\/p>\n

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However, his recent decision to stop purchases of GameStop, then limit buying of the stock thereafter, has earned him accusations of market manipulation.<\/p>\n

Tenev has gone from a celebrated entrepeneur to the target of intense hatred among the retail traders who had been using Robinhood. <\/p>\n

Some users have accused Tenev of kowtowing to financial backers and protecting hedge funds, which shows how radically opinion has changed regarding the man who has long-championed democratizing investing.<\/p>\n

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Tenev’s legacy will rest on how he handles the next few weeks and any subsequent investigations into Robinhood’s actions over the past month. <\/p>\n

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