Robinhood, the low-cost brokerage some critics say has gamified stock trading so much that new investors may not realize they’re risking losing real money, has scheduled what the company is calling a “$100,000 summer giveaway sweepstakes” to attract new clients, according to an announcement.
Participants in the program don’t have to join Robinhood or use its services to qualify as contenders for one of 200 $500 prizes. They need only to apply for Robinhood brokerage accounts and link their bank accounts to Robinhood or refer someone else who applies successfully for a Robinhood account and links a bank account, the announcement stated.
Winners will be notified by Sept. 16, according to the announcement. They will then have 30 days to claim their cash rewards. They can invest the funds immediately or withdraw them as cash after 30 days.
Robinhood’s new promotional campaign comes less than after a week after the company released its first set of second fiscal quarter financial results since going public.
Net cumulative funded accounts grew to 22.5 million from 9.8 million a year ago. Assets under custody grew to $102 billion year over year from $33 billion. Monthly active users increased to 21.3 million from 10.2 million a year ago. Total net revenue increased to $565 million from $560 million expected.
Crypto-related revenues surged to $233 million of the total $451 million in the transaction-related top line, a marked increase from the $5 million in crypto transaction-related sales seen a year ago.
The company warned that moving ahead, “for the three months ended September 30, 2021, we expect seasonal headwinds and lower trading activity across the industry to result in lower revenues and considerably fewer new funded accounts than in the prior quarter.”