PALO ALTO, U.S. — Webull, a Chinese language-owned buying and selling app, turned the second hottest app within the U.S. final Thursday, the day on-line brokerages imposed restrictions on retail traders shopping for GameStop, AMC Leisure and several other different risky shares.
Webull’s app was put in about 100,000 occasions worldwide on Jan. 28 from the App Retailer and Google Play, a 270% week-over-week improve, in line with information offered by market analytics agency SensorTower.
The surging of downloads led Webull to rank as excessive as No. 2 on Thursday amongst all free iPhone apps on the U.S. App Retailer and No. 3 amongst all free apps on the U.S. Google Play retailer, up from round sixtieth place the day earlier than.
Based by former Alibaba Group worker Wang Anquan in 2016, Webull has attracted over 620 million yuan ($96 million) in enterprise funding from outstanding backers together with Chinese language tech large Xiaomi, in line with information analytics agency IT Juzi.
By Thursday, Webull’s app had been put in roughly 9.3 million occasions worldwide since its launch, making it a not-insignificant contender to Robinhood Markets, a number one stock-trading app for retail traders within the U.S. which had over 13 million customers as of 2020.
Webull’s specific surge of downloads on Thursday got here after Robinhood halted its customers’ capacity to purchase securities together with GameStop, AMC, Nokia, and different high-volatility shares fueled by Reddit’s WallStreetBets forum-led retail traders who bid up shares that hedge funds guess will stoop.
GameStop shares have rallied as a lot as 2,450% from their shut in 2020 as small traders piled in and compelled hedge funds to lose billions on their brief positions.
Hedge funds received a short reprieve after Robinhood prevented prospects from buying extra shares of corporations comparable to GameStop on Thursday.
Robinhood’s determination to limit customers’ capacity to commerce sure shares has drawn heavy criticism, together with from U.S. congresswoman Alexandria Ocasio-Cortez — a outstanding critic of Wall Avenue — who on Thursday referred to as it “unacceptable.”
Robinhood resumed customers’ capacity to buy a restricted quantity of sure high-volatility shares on Friday.
Nevertheless, Robinhood is just not the one firm that has restricted customers’ buying and selling of the extremely risky securities. Webull halted trades on a number of shares for just a few hours on Thursday earlier than it eliminated the restrictions.
Webull CEO Anthony Denier stated in a TV interview on Friday that it was not the corporate’s determination to briefly limit the buying and selling, however was on account of issues raised by its third-party clearing agency, which was out of its management.
“We’re a part of this revolution that is happening,” Denier stated in the course of the interview.
Webull’s fast motion to elevate restrictions on buying GameStop and different shares has been praised by some retail traders. “Webull has taken a stance towards brokerages siding with the establishments and has resumed buying and selling of GME and AMC,” reads a put up on Reddit’s WallStreetBets discussion board.
“Disclaimer: it is a Chinese language firm. I do know which may trouble a few of you guys,” the put up continues.