Robinhood, who pioneered the commission-free investing and trading app that caught the fintech world by storm, raised $200 million in August at a valuation of $11.2 billion. Just like early-days Facebook, their app was free, easy to use, and addictive. The name and mission spoke to Millennials, “democratize finance for all.” However, Robinhood's business model might suggest that the Millennials might actually be the product. Robinhood's entire business is built on selling its customers' data to high frequency traders, like Citadel Securities, which accounts for 70% of their revenue. They make less than 15% from their premium (Gold) membership subscription and 15% from securities lending. Robinhood gets rich by selling customer trades ahead of the market, as strong trade signals. It appears from a recent SEC filing that high-frequency trading firms are paying Robinhood over 10 times as much as they pay to other brokerages for the same data. It's a conflict of interest. Robinhood, like eToro, has also been accused in the crypto space of oversimplifying cryptocurrencies and stock options for investors. Robinhood Crypto is available in 46 of the 50 US states, but does not actually accept deposits or process withdrawals in cryptocurrencies; traders are only betting on index prices. While their app has made crypto investing less scary for new entrants, their model can be disastrous if the market becomes volatile or the trading platform crashes. Market orders don't always settle at efficient prices on the blockchain, and customers don't always know what they are buying or the risks involved. On June 12, 2020, a 20-year-old Robinhood customer committed suicide after the app showed a $730,000 negative balance on his leveraged options trade, allowing him over $1 million in leverage. Robinhood added 3 million accounts since January—as COVID-19 stimulus checks turned every Millennial into profitable day traders—and their revenue is expected to hit $700 million this year, a spike of 250% from 2019.